National Regulatory Agency for Electronic Communications and Information Technology of the Republic of Moldova

The National Regulatory Agency for Electronic Communications and Information Technology (ANRCETI – www.anrceti.md) has placed on its Web page, for public consultations, the draft Administrative Board decisions on identification of the market for the provision of wholesale terminating segments (market no.6, doc. in state language) and provision of trunk segments of leased lines (market no.8, doc. in state language), regardless of the technology used for making leased or reserved capacity available and designation of JSC „Moldtelecom” as having significant market power on these markets. The consultations will last through August 1, 2011, which is the deadline for recommendations.

ANRCETI has also made publicly available the draft Analyses of markets 6 and 8 (docs in state language), which comprise the analysis for the identification of these markets and the detailed analysis for designation of the provider with significant market power. The draft documents were developed on basis of Art. 9(1) k), l) and m) and Art. 51 of the Law on Electronic Communications and the Regulations on identification and analysis of relevant electronic communications markets and designation of SMP providers.

For market 6, the relevant product comprises wholesale provision of terminal leased line segments, regardless of the technology used and transmission capacity, for making leased or reserved capacity available, whereas for market 8 the relevant products comprises transmission capacities with alternative interfaces (MPLS, SDH, Ethernet and WDM) and access to unequipped optical fiber.

The Explanatory Notes 1 and 2 (docs in state language) supplementing the draft decisions indicate the findings of the Agency following the market analysis: existence of barriers to entry, lack of effective competition, insufficiency of the provisions of the Competition Protection Law in preventing or remedying the state of things. Based on the analysis, the agency concluded that both markets are susceptible to ex-ante regulation.

The detailed analysis of the two markets proved that JSC „Moldtelecom” has significant market power on both markets. The draft analysis provide for ANRCETI Board approving the decisions on identification of the two markets and designation of JSC „Moldtelecom” as SMP provider on both markets.

The authors of the draft documents also made a number of proposals on how to solve the existing competition problems on the two markets and how to prevent potential abuse of SMP. The proposals are to be subsequently included in the draft Administrative Board Decisions on imposing special ex-ante obligations on JSC „Moldtelecom” as an SMP provider.

Interested stakeholders are invited to deliver commentaries and recommendations on the two draft documents under consultations, in written form, via post to ANRCETI: 134 Stefan cel Mare bd., MD-2012, Chisinau, Republic of Moldova, by fax: (0 22) 222-885 and/or e-mail: office@anrceti.md. Telephone: 251-337.

July 5, 2011