Anacom wants to reduce prices on the local loop

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Anacom proposes a 46 percent reduction in the price charged by Portugal Telecom to new operators at the end of the network section that allows the connection between the telephone exchanges and the customer’s home (local loop).

This draft decision, published at the end of yesterday on the regulator’s website, provides for alternative operators to start paying PT 49 euros in the local loop installation, against the previous 92.12 euros (in full access).

Alongside this measure, the regulator also proposes a reduction of 8 percent in the monthly fee charged by PT Comunicações to new operators for the local loop in full access, which goes from 11.96 euros to 11 euros.

In the last year, the regulator has advanced with a series of measures in this area that aim to accelerate the local loop unbundling process and encourage the appearance of new offers by alternative operators, who are still unhappy with the progress made in this matter.

«Anacom’s draft decision is positive, but it comes at least two years late. In addition, it falls short of what is necessary,» says Daniela Antão, SonaeCom’s director of regulation.

Among the most recent measures are the reduction in terms of time for the supply of the local loop, price reduction in the wholesale offer for the ADSL network and aggregate access and an increase in the number of interconnection points available to new operators.

In the likely sense of decision, the regulator considers that the development of the local loop «is an essential factor for the promotion of competition in the local access market». According to the same resolution, the changes introduced «enable operators and service providers (OPS) to launch innovative and differentiated telecommunications offers, mainly broadband».

PT has 10 days to change the RUO and introduce the maximum reference prices contained in Anacom’s draft decision. The document also provides for qualification tests on shared access to be made optional, eliminating the provisions that provide for the return of the local loop to PT in case of exchange between new operators.

Related News:

2004-12-16 – Anacom reduces maximum time for the supply of loops and determines fines for non-compliance

2004-04-07 – Anacom wants PT to present bitstream access proposal for DSL technology

2004-01-22 – Anacom reduces installation prices and monthly fees for wholesale ADSL offers