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) designated JSC Moldtelecom as having significant market power on the market for wholesale access to network infrastructure at a fixed location and on the market for wholesale broadband access (docs in state language). The ANRCETI Administrative Board Decisions on SMP designation were published today, October 8, in the Official Gazette of RM.

The market of wholesale access to network infrastructure comprises the service of access to local loop/sub loop, made of a twisted metallic pair, including whole of shared access to the local loop/sub loop. The market for wholesale broadband access presupposes services of wholesale broadband access based on xDSL technology (bit stream), including the associated transmission capacity.

Originally, the Agency identified the given markets as susceptible to ex-ante regulation, after which, as a result of their detailed analysis, found that they are not efficiently competitive and established that the incumbent JSC Moldtelecom has significant market power on those markets. According to the Law on Electronic Communications, a provider is considered as having significant market power on a relevant market, where his market share, according to the market analysis, is 35% or higher and where the analysis shows that the given market is not sufficiently competitive.

ANRCETI delivered its Board Decisions to JSC Moldtelecom and to the National Agency for Competition Protection (ANPC). According to the legislation in force, within 10 days, ANPC must register the provider with significant market power in the List of economic entities with dominant position on relevant electronic communications markets and publish this list in the Official Monitor. Upon expiry of this term, ANRCETI has the right to adopt a decision of imposing special remedies to the designated SMP provider.

The draft Decision regarding special remedies to be imposed on JSC Moldtelecom as an SMP provider on the market for wholesale access to network infrastructure at a fixed location and on the market for wholesale broadband access was subject to a public consultation procedure and is planned to be approved soon in a public session of ANRCETI’s Administrative Board. The regulatory document is targeted at smoothing the negative impact of Moldtelecom’s significant market power on those markets and enhances efficient competition on those markets.

October 8, 2010