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The Swedish regulatory authority Post & Telestyrelsen (PTS) has today published a number of key documents relating to the practical implementation of the new regulatory framework.


These include price calculation methodologies for wholesale products and proposals for the designation of SMP operators on a number of relevant markets, as well as the regulatory obligations (remedies) that PTS proposes to impose on these operators.



The most remarkable proposals in the area of SMP designation and suggested associated regulatory remedies are as follows:


1) Access to the public telephone network at a fixed location (Markets 1 and 2)


PTS puts forward TeliaSonera as the SMP operator, and follows "the retail route" to suggest the imposition of a Wholesale Line Rental obligation.


2)  Call termination on individual public telephone networks provided at a fixed location (Market 9)


PTS puts forward a number of SMP operators (the incumbent and two separate sets of fixed alternative operators), and proposes to impose different regulatory obligations on the different categories of operators.


Note: the Finnish regulatory authority FICORA had done the same, and the European Commission's Article 7 Task Force made important remarks on this approach. See also our previous news item on this point.


3) Wholesale broadband access (Market 12)


PTS puts forward TeliaSonera as the SMP operator, and proposes (amongst others) to impose bitstream access, cost-orientation, and the publication of a reference offer.


4) Voice call termination on individual mobile networks (Market 16)


PTS puts forward a number of SMP operators and proposes to impose different regulatory obligations on two categories of operators. The categories are not 2G vs 3G, but are based on the market share of the operators.

For Telia Sonera, Vodafone and Tele2, PTS puts forward, amongst others, cost-orientation for call termination, the publication of a reference offer, and an obligation of non-discrimination. For Hi3G (a dedicated 3G operator) and for Telenor Mobile/Djuice (an MVNO on Tele2's network), the obligations are lighter.


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The full text (207 pages, in Swedish only) of PTS' proposals can be accessed by clicking here. Proposals are made for 13 out of the 18 markets listed in the European Commission's Recommendation on Relevant Markets Susceptible to Ex-Ante Regulation; proposals for markets 13 and 14 (wholesale leased lines), 15 and 17 (mobile), and 18 (broadcast transmission) will be made at a later stage.


A summary (4 pages, in Swedish only) of PTS' proposals can be accessed by clicking here.


An intensive programme of consultations is being initiated on the basis of these proposals, including a hearing of interested parties (week 10), notification to the European Commission (week 16). The final decision is expected to be taken in week 21-23 of the year 2004.


For a discussion of the implications, and precedent value, of certain PTS proposals, please contact Yves Blondeel.