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

The Administrative Board of the National Regulatory Agency for Electronic Communications and Information Technology (ANRCETI - www.anrceti.md) is announcing, a public session to review and approve the draft decisions on designation of JSC „Moldtelecom” as a providers with significant market power on two wholesale markets: the market for call origination at fixed locations in the public telephone network and the market for traffic transit (docs in state language) in the public telephone network. Stake holders are invited to attend the session on Tuesday, June 21, at 14.00, ANRCETI office, 5 floor, Conference Room (134, Stefan cel Mare bd.).

On its web page ANRCETI has placed the final detailed analyses of the two mentioned markets. The four documents were developed pursuant to Art. 9 (1) lit. k), l) and m) and Art. 51 of the Law on Electronic Communications, the provisions of the regulations on Identification and Analysis of Relevant Electronic Communications Markets and Designation of SMP EC Network/Service Providers, Administrative Board Decisions no.24 and no.25 of 19.08.2010 on identification of the market for call origination at fixed locations in the public telephone network and the market for traffic transit in the public telephone network.

In the timeframe May 25 – June 13, 2011, the aforementioned draft documents were subject to public consultations; however, ANRCETI received no feedback. With delay, over the deadline, JSC Moldtelecom submitted a number of recommendations to the analyses. During the session of approval, ANRCETI intends to present their view on the recommendations.

The first market comprises the services of call origination on the network segment delimited by the fixed network termination point where calls are originated, on the one hand, and, on the other – the first switch or a transit switch, depending on hierarchical level where the point of interconnection is located. The second market includes national and local transit services for all categories of calls on the network segment between two or more points of interconnection

According to Explanatory Notes 1 and 2 (docs in state language), supplementing the draft documents, the analysis conducted by ANRCETI showed that JSC Moldtelecom has significant power on the market for call origination at fixed locations in the public telephone network and the market for traffic transit in the public telephone network. Based on this analysis, the Agency identified the significant power of Moldtelecom on both markets.

ANRCETI also identified the risks for markets distortions and specific ex-ante obligations to be imposed on Moldtelecom in order to prevent eventual adverse effects of SMP on competition. Subsequently, ANRCETI intends to issue and publicly consult draft decisions on imposing special ex-ante obligations on JSC Moldtelecom in connection with significant market power. These obligations are intended to help remedy the existing competition problems on those markets and to prevent any abuse of significant market power.

June 16, 2011