Nowadays, incumbent operators are deploying
GPON FTTH access network over substantial part
of the countries in Europe, in a Point-to-Multipoint
architecture (P2MP). This architecture is characterized
by a shared fiber from the Central Office (C.O.)
to a certain location where, by means of splitters, individual
fibers carry the signal to/from every user. It
is preferable for an open market situation, where the
competition in prices and services is desirable and
also enforced by local governments and administrations,
to have different entry options to the market
for the many alternative operators (entrants) which
may come up and compete with the incumbent. For
that reason, this study aims at considering different
unbundling options for the Local Loop Unbundling
(LLU) in order to provide multioperator access and
consider the economical impact for the entrants to deploy
such alternatives.
The scope of this study primarily covers remedies
to be imposed upon operators designated with Significant
Market Power (SMP) on the basis of a market
analysis procedure carried out under Article 16
of Directive 2002/21/EC [EUC02a]. However, where
it is justified on the grounds that duplication of infrastructure
is economically inefficient or physically
impracticable, the regulator may also impose obligations
of reciprocal sharing of facilities on undertakings
operating an electronic communications network
in accordance with Article 12 of that Directive
which would be appropriate to overcome bottlenecks
in the civil engineering infrastructure and terminating
segments.
This work deals with the following issues:
• Alternatives for LLU: although there are several
methods, the next three have been considered
as they are the most feasible in terms of cost, scalability
and upgradeability, in the number of clients and
operators. [ALC10a] [FCE11c] [ISD09a] [MAS09a]
[ITU08a] [WKC10a]
o Move the Splitters Back.
o Replicate the Access Network.
o Upgrading to WDM technologies.
• Results / Comparison: both absolute and incremental
costs, starting from a P2MP deployment
for the different unbundling strategies.
Alternative operators, some of whom have already
deployed their own networks to connect to the
unbundled copper loop of the SMP operator, need to
be provided with appropriate access products in order
to continue to compete in an NGA context. For
FTTH these may consist of access to civil engineering
infrastructure, to the terminating segment, to
the unbundled fiber loop (including dark fiber) or of
wholesale broadband access, as the case may be. This
work, although aiming to be general, takes the relevant
data from the Spanish FTTH case.
Where remedies imposed on Market 4 lead to effective
competition in the corresponding downstream
market, in the whole market or in certain geographic
areas, other remedies could be withdrawn in the market
or areas concerned. Such withdrawal would be
indicated, for instance, if the successful imposition of
physical access remedies were to render additional
bitstream remedies redundant. Moreover, in exceptional
circumstances, the regulator could refrain from
imposing unbundled access to the fiber loop in geographic
areas where the presence of several alternative
infrastructures, such as FTTH networks, in combination
with competitive access offers on the basis of
unbundling, is likely to result in effective competition
on the downstream level. [EUC10c]
