The Belgian telecom and media regulators have confirmed the new fixed market regulations, following clearance from the European Commission. Telecom regulator BIPT said the new rules should lead to more competition and choice for internet and TV services.
The original analysis, first published a year ago, found the market lacked sufficient competition and declared the operators Proximus, Telenet, Brutele and Nethys dominant players required to open up their networks to other players. The wholesale access prices will also be reduced, in some cases by up to 20 percent, from this August.
New elements to the regulation compared to the last wholesale broadband decision include a requirement for cable operators Telenet and Voo to offer a broadband-only service and to provide wholesale fixed telephony. Previously they only resold broadband together with TV. This is expected to open up new types of subscription, including the ability to offer more types of multi- or single-play. Orange, the first wholesale customer on the cable networks, has already said it plans to introduce a broadband-only plan.
In addition, Proximus must provide wholesale access to its growing FTTP network, which is gradually replacing copper. Orange said it expects this to benefit particularly the B2B market, as Proximus is focused initially on connecting areas with a large number of businesses to fibre. Both Proximus and the cable operators must also provide certain service level guarantees to wholesale customers, so they can better serve the business market.
The regulation also allows for differentiation according to geographic area. It will take a lighter touch in areas where at least three operators offering at least 30 Mbps are active, as well as in areas lacking broadband infrastructure, in order to encourage investment. The latter concerns around 5 percent of households.
Minister pleased, Orange awaiting new rates
Belgian telecom minister Alexander de Croo welcomed the decision, saying it should help bring down the high telecom prices in the country. While neighbouring countries have seen telecom prices fall in the past two years, prices have risen six percent in Belgium, he said citing Eurostat figures. De Croo recently called for the launch of a fourth mobile operator to help bring down prices also in the mobile market.
Orange Belgium also welcomed the changes, saying it will provide "more sustainable financial conditions over time". The company noted that the regulator still needs to set permanent wholesale prices in a subsequent decision, based on a cost-oriented model rather than the current 'retail minus' method used, based on the cable operators own retail rates. Orange called for the new rates to be set "as soon as possible" and said its own broadband-only subscription will have to wait until these rates are in place.
Orange said its customers will benefit more immediately from the operational improvements in the new regulation. In particular it will gain access to both outdoor and indoor cable infrastructure at the customer's premises, meaning it should be able to set up new customers with only one visit by a technician, rather than having to have a visit also from a Voo or Telenet technician to connect the customer to the cable network.