1. Ein Netzwerkpartner des FEEI 30.05.2005 1 The state of implementation of the Electronic Communications package in Austria Achim Kaspar Association of Alternative Telecommunications Operators

2. Ein Netzwerkpartner des FEEI 30.05.2005 2 founded in 1997 when the Liberalisation started in Austria platform for new operators members are fixed-line and mobile operators –1,7 Bill. revenue/year –6.000 people employed –3,5 Bill. investment in infrastructure between 1998 and 2001 Association of Alternative Telecommunications Operators ("VAT")

3. Ein Netzwerkpartner des FEEI 30.05.2005 3

4. Ein Netzwerkpartner des FEEI 30.05.2005 4 Telecommunication market in Austria revenue 2003 * fixed line (voice) 1.62737,5% mobile 2.31953,4% broadband 2796,4% leased lines 1172,7% TOTAL 4.342 fixed line customers:approx. 3,8 Mio. mobile customers:approx. 7 Mio. * amounts in Mio

5. Ein Netzwerkpartner des FEEI 30.05.2005 5 Implementation of NRF Aug.2003: Telecommunications Act 2003 (TKG 2003) Oct.2003: market definition ordinance (TKMVO 2003) defines 16 markets (+ broadcast market) data collection, market analysis, draft decisions and consultation procedures for 14 markets until now TA is deemed to have SMP in 10 of 13 possible markets; ANB and mobile operators are deemed to have SMP in individual wholesale termination markets

6. Ein Netzwerkpartner des FEEI 30.05.2005 6 Pending issues broadband market unbundling fee wholesale line rental fee transit market trunk segments of leased lines

7. Ein Netzwerkpartner des FEEI 30.05.2005 7 Wholesale broadband access wholesale broadband access market (market #12) was not defined in market definition ordinance consultation on market definition started in March 2005 market definition enacted in May 2005 market analysis is pending, no SMP declared, no obligations imposed TA-market share on DSL-Retail market is 67% TA ANB

8. Ein Netzwerkpartner des FEEI 30.05.2005 8 Broadband access lines eoy 2004 Broadband penetration: >25% (households) DSL access is growing faster than CATV access 35,7%ADSL TA-Retail298.400 10,2%ADSL TA-Wholesale85.200 7,0%DSL Unbundling58.476 39,8%CATV-Retail332.500 5,7%CATV-Wholesale47.500 0,4%powerline3.600 1,2%W-LAN10.000 Total835.676

9. Ein Netzwerkpartner des FEEI 30.05.2005 9 Wholesale broadband access concerns of ANO: this most strategic market with the highest growth-rates was defined at the latest date and after all other markets, no decision on SMP-status nationwide wholesale offer of one single supplier must be imposed technological neutrality must be ensured in state-aid financial programs fair competition must be ensured

10. Ein Netzwerkpartner des FEEI 30.05.2005 10 2,5% of all access lines of TA are unbundled TA market share on retail access market is 95%; TA market share on wholesale unbundled access market (market #11) is 100% unbundling fee: 10,90.--*, cheapest TA subscription fee: 13,31.--* margin between wholesale offer and retail price is insufficient for successful business models * amounts excl. VAT Wholesale unbundled access unbundling fee must be decreased

11. Ein Netzwerkpartner des FEEI 30.05.2005 11 Wholesale line rental access to the public telephone network at a fixed location for residential / non-residental customers TA is deemed to have SMP on retail markets #1 and #2 NRA imposed obligation on TA to offer wholesale line rental price calculation is based on average of residential and non- residential market, prohibitive up-front costs –non-compliance with Art. 7 procedure –non-compliance with EC-market recommendation –commission will come back on our concerns competitive offer must be made

12. Ein Netzwerkpartner des FEEI 30.05.2005 12 Transit services wholesale market for transit services in the fixed public telephone network (market #10) NRA declared "effective competition" in its draft measure "veto decision" of the European Commission in Oct. 2004 –insufficient green field analysis –substitutes must be truly available NRA must modify the result of the market analysis and is still thinking about filing a complaint at ECJ time limit must be defined

13. Ein Netzwerkpartner des FEEI 30.05.2005 13 Trunk segments wholesale market for trunk segments of leased lines (market #14) NRA declared effective competition on this market although TA is the only supplier in 5 out of 28 access points (cities) cities are important for nationwide infrastructure coverage risk of bundled offers and risk of disadvantages of ANO in tender procedures fair competition must be ensured