1 telecom regulation in the netherlands 5 november 2014
TRANSCRIPT
2
Agenda
• Introduction of ACM• Telecom trends and developments in NL• Telecom markets analysis• (Cable) television regulation in NL• Consuwijzer
4
Introduction of ACM
• Autonomous Administrative Authority• Merged from 3 organisations in 2013 • Board of three:
– Chris Fonteijn (Chair)– Antia Vegter– Henk Don (telecom)
• ± 500 FTE
6
ACM Strategy
• “ACM aims to create opportunities and options for consumers and businesses”
• Consumer welfare• Consumer awareness
Core values:
• Independence• Professionalism• Openness
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Telecom-related activities
• Registration of public electronic communication service operators, collecting fees
• Issuing phone number series• Telecom-specific consumer protection laws
(net neutrality, contract clauses, transparency, USD)• Dispute settlement (eg radio tower access, rights of way for
cable laying)• Market Analyses: SMP and access / tariff regulation
Not:• Frequency auctions, • Technical oversight, • Media act (any content)
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Networks• Mobile:
– Three 3G-networks – Already two national 4G-networks, two others are being rolled out
• Fixed: – 100% copper coverage: upgrading via pair bonding and vectoring– 95% cable coverage (households)– 30% FttH coverage (households)
30-6-2010 31-12-2010 30-6-2011 31-12-2011 30-6-2012 31-12-2012 30-6-2013 31-12-2013 30-6-2014
Homes connected (FttH) 569 658 768 918 1.078 1.303 1.512 1.832 1.994
0
500
1.000
1.500
2.000
2.500
nu
mb
er
of
con
ne
ctio
ns
x 1
,00
0
Broadband: homes connected (FttH)
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UPC/Ziggo cable merger
European Commission recently approved merger, with some content remedies•UPC/Ziggo reaches 92% of NL households, significantly less businesses•Main competitor of KPN in most markets•EC: any risk of joint dominance is not due to merger
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Broadband internet
• Market positions of KPN and merged UPC/Ziggo roughly similar
30-9-2012 31-12-2012 31-3-2013 30-6-2013 30-9-2013 31-12-2013 31-3-2014 30-6-2014CANALDIGITAAL - - - - - - [0 - 5%] [0 - 5%]KPN [40 - 45%] [40 - 45%] [40 - 45%] [40 - 45%] [40 - 45%] [40 - 45%] [40 - 45%] [40 - 45%]TELE2 [5 - 10%] [5 - 10%] [5 - 10%] [5 - 10%] [5 - 10%] [0 - 5%] [0 - 5%] [0 - 5%]T-MOBILE [0 - 5%] [0 - 5%] [0 - 5%] [0 - 5%] [0 - 5%] [0 - 5%] - -UPC [15 - 20%] [15 - 20%] [15 - 20%] [15 - 20%] [15 - 20%] [15 - 20%] [15 - 20%] [15 - 20%]ZIGGO [25 - 30%] [25 - 30%] [25 - 30%] [25 - 30%] [25 - 30%] [25 - 30%] [25 - 30%] [25 - 30%]Other [5 - 10%] [5 - 10%] [5 - 10%] [5 - 10%] [0 - 5%] [5 - 10%] [5 - 10%] [5 - 10%]
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Television
30-9-2012 31-12-2012 31-3-2013 30-6-2013 30-9-2013 31-12-2013 31-3-2014 30-6-2014
Analogue only 19% 19% 17% 16% 15% 14% 14% 13%
Digital and analogue 48% 47% 48% 49% 49% 50% 50% 51%
Digital only 33% 34% 35% 35% 36% 36% 36% 36%
0%
10%
20%
30%
40%
50%
60%
Shar
e of
sub
scri
ption
s
Television: digitization of subscriptions
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Fixed telephony
• Migration from PSTN to VoB expected to slow down in 2015/2016
• Ongoing migration from ISDN2 to IP
• Migration from ISDN30 to IP just started
• Decrease in market volume dual and multiple
Single calls (PSTN)
Two calls (ISDN2) Multiple calls (ISDN30)
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Bundling
30-6-2011 31-12-2011 30-6-2012 31-12-2012 30-6-2013 31-12-2013 30-6-2014
Dual play - Broadband and fixed telephony 1.330 1.189 1.088 1.003 1.007 897 838
Dual play - Broadband and television 662 672 656 679 697 728 799
Dual play - Fixed telephony and television 89 105 90 98 99 101 91
Triple play + quadruple play 2.420 2.714 2.999 3.337 3.692 3.914 4.057
Total bundled subscriptions 4.500 4.680 4.833 5.118 5.496 5.640 5.785
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
Num
ber o
f su
bscr
ipti
ons
wit
h bu
ndle
d off
ers
(x 1
,000
)Multiplay: bundles offers based on multiple services billed together
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Mobile market
30-6-2012 30-9-2012 31-12-2012 31-3-2013 30-6-2013 30-9-2013 31-12-2013 31-3-2014
Minutes of traffic (x 1,000) 5.634.160 5.363.795 5.760.782 5.686.770 5.853.737 5.582.763 6.224.566 6.205.108
Data (x 1,000 MB) 5.331.243 5.932.102 6.749.284 7.215.930 7.761.576 8.727.345 10.274.603 11.588.649
SMS (x 1,000) 2.080.763 1.838.890 1.692.681 1.440.031 1.386.259 1.316.488 1.178.447 1.061.956
0
2
4
6
8
10
12
14
volu
me
x 1,
000,
000,
000
Mobile: Volume retail minutes of traffic, data and sms (MNOs and MVNOs)
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Market analysis
• Objectives:– Foster competition and investments– Promotion of consumer interest– Creation of internal market
• Analysis of telecom markets:– If SMP ACM imposes obligations:
• Access to least replicable network elements
– Process of market analysis:• Draft consulted nationally• Second draft notified with EC
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Local loop unbundling
Fixed telephony
Wholesale Fixed
telephony
WBT/ huurlijnen
Wholesale leased lines and HQ WBA
LQ WBAMultiple
Calls(ISDN 15>)
Single calls (PSTN)
Business connectivity services Internet Television
ODF-FttH/MDF/SDF Access
reta
il
dow
nstr
eam
w
hole
sale
ODF-FttO Access
Two calls(ISDN2)
Two calls(ISDN2)
Single calls(PSTN)
Mulitiple Calls
(ISDN15>)
Market 4: LLU
Market 5&6: WBA and WLL
Market 1&2: fixed telephony
Regulated
Not regulated
Light regulation
3rd round of market analysis
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LLU market analysis
• Retail markets:– Risk on single SMP KPN on fixed telephony and business
connectivity serivies– Risk on joint SMP KPN and UPC/Ziggo on internet
(including bundles)
• Wholesale market LLU:– Copper and FttH-access belong to market– Unbundled cable-access no substitute– KPN is owner of copper- and FttH-network and has to
grant access (including non-discrimination and tariff regulation)
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First & second TV analysis – regulation
• 2006: – Separate market for cable TV– SMP regional cable operators– Access obligation for physical channel/frequency
• Not used: access seekers wanted cheap access to the cable operators commercial package of channels, or wanted to resell that package
• 2009:– Broad market with analogue and digital cable,
ADSL, FttH, satellite, terrestrial– Still SMP regional cable operators– Access obligation to resale analogue package
• Annulled by court in 2010
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Third TV analysis – no regulation
• 2011: same broad retail TV market• TV market no longer on EC list: three criteria
– High and non-transitory barriers to entry?– No development toward competition?– Other legislation will not solve problems?
• Conclusion: market does nog pass three criteria test, so no ex-ante regulation– Digital TV growing, making competition from other
infrastructures easier– Entry possible on DSL, FttH, resale DVB-T, and
threat from OTT services– KPN growing as strong competitor, cable shrinking
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Television distribution development NL
2006 2014
80-85% cable 60-65% cable
<1% IPTV-DSL 10-15% DSL-IPTV
10-15% satellite 5-10% satellite
0-5% terrestrial 5-10% terrestrial
5-10% FttH (IPTV, DVB-C, analogue)
>40 cable networks ±20 cable networks
KPN starting <5% KPN strong competitor 25-30%
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Current TV issues
• No new analysis, 2011 conclusion still holds– UPC/Ziggo merger does not change this– But politicians/competitors not happy, could request formal
analysis
• Discussions – Some HBBtv signals blocked by (all) TV operators– ‘Level playing field’ between OTT and broadcasting
services/providers– Possible regulations for search portals, EPG’s
• 2015: analysis of IP interconnection (peering)– The wholesale side of netneutrality– Issue is cost of OTT video (that competes with TV operators)
ConsuWijzer – how did we start?
Co
ns
uW
ijzer
• 2006: Start of the Consumer Authority• Start of ConsuWijzer, as an Information service of 3 enforcement agency’s
• Two legs of consumer protection– Enforcement– Information Services
• Key to succes: Education & Insight in the markets
• 2008: switch to empowerment of consumers• 2010: First Government website-of-the-year award• 2013: merger of Nma, OPTA and CA to ACM
2014 ACM Conference – Innovation in Oversight, Oversight and Innovation
Facts & Figures
2.000.000 site visits 70.000 requests & signals
Customer Satisfaction: 7.3Readiness to take action: 46%
Empowerment
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Key principles in empowerment:
• We use easy-to-understand communication and give practical advice.
• Practical tools to reduce the barrier to really take action.
• Behavioral science
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Tone of voice
• Clear and understandable advice, in plain language
• To empower -> do it yourself• All advice contains an action plan• Do not pick a side!
It is not about what we say.., It is about what they understand!It is not about what we say.., It is about what they understand!
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Tools
• Webshop scan• Example letters• Checklists• Leaflets• Preparing conversations• Compare lists• Travel prices check• etc.
”if you snooze, you lose”
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• If consumers were more active, competition would increase, new entrants would be attracted, the increase in innovation would be supported, and the need for regulatory oversight would be reduced.
• In this campaign, we address and attempt to appeal to certain behavioral biases people naturally have. Examples are:– The Status quo bias– Loss aversion bias– Social preference
• General interest was high, our campaign received positive and widespread attention in major newspapers and on national television.
if you snooze, you lose
Best practices
Co
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uW
ijzer
• Combine consumer advice with business intelligence
• Information services is an integrated proces, be involved at the start of an investigation
• Don’t think in legal areas but in consumer problems
• It is not about what we say, it is what they understand