Page 70 - SAMENA Trends - December 2023

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WHOLESALE NEWS

GCRA Issues Final Decision On Wholesale Fixed Broadband Pricing

The Guernsey Regulatory and Competition Authority (GCRA)
has issued its final decision on wholesale broadband pricing
under which the average charge for local fixed line incumbent
Sure Guernsey’s wholesale broadband services will be reduced
to GBP26.40 (USD33.4) per month – a figure equating to a 31%
reduction from the current average charge level. As per the
regulator’s decision, the new rate will be applicable from 1 April
2024 to 31 December 2028. According to the GCRA, it estimates
that the reduction in Sure’s wholesale broadband revenues for the
first full year of the price control in 2025 will be GBP2.9 million.
Should these price reductions be passed on to consumers, the
watchdog has suggested they could see an annual average
saving of GBP116 in 2025. Summarizing the reasoning behind
its decision, the GCRA claimed that Guernsey’s fixed broadband
customers currently ‘face some of the highest prices in Western
Europe’, with it saying that a ‘significant contributor’ to this situation
is the fact that access to fixed broadband is controlled by Sure’s
network business, ‘which sets high prices to retailers of broadband its ongoing fiber investment program and still earn ‘a reasonable
with little competition’. By intervening in the market, the GCRA return’. In this area the regulator noted it had conducted an
has suggested a wholesale price reduction will enable retail ISPs extensive review, accounting for Sure’s costs and revenues in the
to lower their prices ‘significantly’, in turn making the Bailiwicks’ coming years as it rolls out its full fiber network, with this done to
charges for such services more comparable to other western ensure that the reduction in charges would still enable the telco to
European countries. Meanwhile, the GCRA has said that, despite recover its efficient costs and would not undermine the financing
the reduction in charges, it has sought to ensure that Sure can fund of the infrastructure deployment.

NCC Outlines Proposed Retail and Wholesale Tariff Adjustments for 2024-

28

Taiwan’s National Communications Commission (NCC) has issued specified that the price reduction would not apply to ADSL-based
a draft notice regarding proposed adjustments to tariffs for the services offering downlink speeds below 12Mbps nor those FFTx
wholesale fixed broadband markets. In a press release regarding tariffs offering downlink rates of more than 300Mbps. With regards
the matter, the regulator said that it was proposing for retail fixed to wholesale fixed broadband, meanwhile, the NCC has suggested
broadband retail prices to be reduced by ‘3.32% minus the annual a tariff reduction of ‘5.09% minus the annual growth rate of the
growth rate of the consumer price index’ for those operators consumer price index’, though here the reductions will not apply
deemed to hold significant market power (SMP). Of note, the NCC to those connections offering downlink speeds of 2Mbps or less.

DIGI, Vodafone Agree to Spectrum Usage Rights, Wholesale Fiber Access

DIGI Portugal and Vodafone Portugal have entered into a framework is part of a remedy package submitted by Vodafone in connection
agreement, under which DIGI Portugal will gain spectrum usage to its acquisition of Cabonitel/Nowo Communications. Vodafone
rights to 2×10MHz in the 1800MHz band and 2×10MHz in the entered into an agreement with Llorca JVCO, the owner of Spanish
3400MHz-3800MHz band, in addition to wholesale bitstream operator MasMovil Ibercom (trading as Grupo MASMOVIL), to
access to Vodafone’s own proprietary optical fiber network. The acquire Cabonitel, the holding company which controls Portuguese
deal, subject to approval by the Portuguese Competition Authority, operator Nowo, In October 2022.

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