Wholesale market for physical network infrastructure access at a fixed location: M 1.1/12-106 of Dec. 16, 2013

The market analysis decision M 1.5/15-115  dated July 24, 2017 found A1 Telekom Austria AG having significant market power on the wholesale local access market. In order to remedy the competition problems identified, A1 Telekom Austria AG was simultaneously ordered to grant access to unbundled loops and sub-loops as well as ancillary services (e.g. collocation). A1 Telekom Austria AG is also subject to obligations not to discriminate, to base its charges on the cost of efficient service provision ("FL-LRAIC") with a maximum amount of 8.16 €/month for using an unbundled loop (copper loop as well as hybrid fibre/copper loop). A charge of 6.31 €/month applies when using an unbundled sub-loop "C1" (between subscriber's network termination point and the street cabinet). An unbundled sub-loop "C2" (between subscriber's network termination point and the house distribution frame) can be used at no charge; however, fault repair and maintenance cost have to be covered by the wohlesale partner. At the same time, A1 Telekom Austria AG has to ensure that the unbundled loop's monthly line rental does not cause a margin squeeze (unbundling partner's margin falling below a minimum gap between wholesale and retail charge). In addition, A1 Telekom Austria AG is obliged to use separated accounts and to publish a reference offer with regard to the wholesale services. 

As a consequence of changes in the competitive landscape by the incumbent's NGA rollout, the decision provides for further obligations of A1 Telekom Austria AG regarding conditions for the use of the transmission system VDSL-2 within the access network (including the "vectoring" system extension) and the provision of services  in the context of "virtual unbundling".

In addition, A1 Telekom Austria AG has to publish and regularly update reference offers for unbundling and virtual unbundling on its website within eight weeks from entry-into-force of the market analysis decision regarding the services listed under point A. of this decision. A1 Telekom Austria AG has to inform all unbundling partners and virtual unbundling partners as well as the Telekom-Control-Kommission (rtr@rtr.at) by email of substantial modifications of these reference offers at the latest simultaneously with publication.

The content of the Reference Unbundling Offer ("RUO", see https://cdn11.a1.net/m/resources/media/pdf/RUO-2017.pdf) largely corresponds to a series of dispute settlement decisions dated April 20, 2009 (see http://www.rtr.at/de/tk/ULL2009) but has been completed by further stipulations with regard to NGA buildout in Annex 9. In addition to a main section with general contractual provisions, the offer contains annexes with provisions on the use of transmission systems on unbundled local loops and sub-loops (Annex 2), ordering, provisioning and cancellation procedures for unbundled local loops and sub-loops (Annex 4), sub-loop unbundling (Annex 5), collocation (Annex 6 including an EtherLink Service for connecting collocation locations), fault repair and maintenance (Annex 7), rates and charges (Annex 8) and network compatibility of transmission systems and NGA rollout (Annex 9). 

Minimum content of the reference offer for physical unbundling of the local loop and sub-loop and for access to ancillary services (e.g. collocation), point 3.3.2.2.1. of the market analysis decision:

  • Detailed breakdown of services encompassed by this decision and the respective service charge including discounts;
  • Procedure regarding order, delivery and cancellation of the services concerned including mutual penalties;
  • Provisions on utilization of unbundled loops and sub-loops (excluding pair-gain systems) including provsions regarding the deployment of vectoring and G.fast at access remote units, street cabinets and main distribution frames;
  • Provisions concerning quality and extended quality in Service Level Agreements (delivery, fault repair conditions, response times, availability) including penalties;
  • Provisions on migration of an unbundled loop or sub-loop including number portability;
  • Specifications for access to electronic interfaces including modalities of changing those specifications;
  • Specifications for physical access to relevant switches, i.e. main distribution frame and other switching points, i.e. street cabinet, access remote unit, house distribution frame and else) including provisions on collocation and its use and on discontinuation of a main distribution frame including conditions for compensation of frustrated investments;
  • Specifications of transmission systems and grid compatibility;
  • Provisions on using xDSL transmission systems on unbundled loops and sub-loops from a main distribution frame and from a street cabinet as well as ex-post limitations of such clearance;
  • Provisions on forecasting issues with regard to a potential cooperation in case of FTTC/B/H buildout measures by A1 Telekom Austria AG including modalities to order capacities at existing and newly-built access points/street cabinets;
  • Provisions on compensation for frustrated investments of alternative providers in xDSL transmissioin systems by A1 Telekom Austria AG and on a cost-free migration of xDSL systems to adequate wholesale products in case of an NGA buildout measure by A1 Telekom Austria AG;
  • Provisions on cost to be borne by acess seeker;
  • Provisions on charges for access and for ancillary services according to point 3.3.1.2;
  • Provisions on time-limits for supply of information, for delivery of services and for fault repair including penalties for non-compliance.

A similar structure is used for the Reference Offer on virtual unbundling (see http://cdn3.a1.net/final/de/media/pdf/Virtuelle_Entbuendelung.pdf). Basic elements for the strucure of this Reference Offer have been provided by a dispute settlement decision of the Telekom-Control-Kommission dated Dec. 17, 2012 (see https://www.rtr.at/de/tk/Z1_11_Z3_11). A main section with general contractual provisions is followed by several annexes. Annex 1 („Technical Manual“) gives an overview on network and service architecture, handover points, service class parameters, bandwidth profiles and DSLAM configuration. Processes with regard to ordering, provisioning and cancellation as well as availability requests, timeshifts, migration processes, contact points and forms are subject to Annex 2 ("Operation manual").  While Annex 3 covers charges and Annex 4 maintenance and fault repair, Annex 5 describes rules for the use of modems. A new Annex 5a enables wholesale partners to rent modems from A1 in order to make them available to own retail subscribers. A list of potential locations for applying virtual unbundling can be found in Annex 6 while Annex 7 gives instructions how to use the web interface. Several abbreviations and definitions can be found in Annex 8. Annex 9 contains provisions with regard to the Optical Network Termination ("ONT") in case of bei FTTH subscriber lines. Annexes 10 and 14 cover stipulations regarding the prerequisites of a mandatory migration of existing services provided by wholesale partners in the course of an NGA buildout at an access remote unit (Annex 10) or a main distributon frame (Annex 14). Rules on "port forwarding" in the course of shifting a virtual unbundling service from an MDF location to an ARU location or from an ARU location to another ARU location can be found in Annex 11. Annex 12 covers procedures for supplementary package orders (e.g. modem installation, WLAN configuration). Annex 13 describes switching procedures between different virtual unbundling flavours. Annex 15 describes port forwarding procedures in case existing VE services are switched from one DSLAM port to another.

Minimum content of the Reference offer on a wholesale product "Virtual unbundling", point 3.3.2.2.2 of the market analysis decision:

  • Detailed breakdown of virtual unbundling services based on FTTC/B/H including DSLAM management bandwidths; 
  • Provisions on specifying the geographical availability of virtual unbundling;
  • Provisions on options regarding the use of terminal equipment (modems) including provisions for a „White List“ and minimum modem parameters,
  • Provisions on order, delivery and cancellation of the services concerned;
  • Provisions on fault management and fault repair;
  • Provisions on use of the services concerned;
  • Provisions on quality/extended quality in the form of Service Level Agreements (delivery, fault repair, service quality, availability) including penalty provisions;
  • Specifications for access to electronic interfaces including modalities for changing these interfaces, including penalties stipulating a penalty must be paid in case of non-availability of the electronic interface or central elements for a period exceeding 12 hours and a partial penalty in case of an outage exceeding 2 hours; 
  • Specifications for physical access to relevant switches, i.e. main distribution frame and other switching points, including provisions on collocation and backhaul;
  • Provisions on mandatory and regular migration to virtual unbundling including number porting and cost issues with regard to migration; at the same time, it must be safeguarded that a bandwidth upgrade following announcement of a virtual unbundling NGA buildout must be offered at the regular vULL charge insofar as a subscriber in case of a migration to vULL gets the bandwidth which had been realized on the unbundled loop; in case of mandatorxy migrations OLOs must be able to migrate all services within the given MDF area to active wholesale products at the monthly charge for physical unbundling (excluding additional charges for DSLAM management, traffic handover or other services);
  • Provisions on bulk migrations (e.g. migration of all subscribers of a wholesale partner in a given MDF area from physical to virtual unbundling) as an independent migration process;
  • Procedure regarding the demand for new active products or product features of virtual unbundling;
  • Provisions on ensuring a seamless service provision for the retail subscriber to the utmost extent;
  • Stipulations on time-limits for supplying information, for providing services and for fault repair including penalties in case of non-compliance;
  • Provisions on charges for virtual unbundling services based on FTTC/B/H, includng discounts (where applicable).

A1 Telekom Austria AG has published both offers in due time.

The actual Reference Unbundling Offer ("RUO 2017") can be found on the website of A1 Telekom Austria AG under

https://cdn11.a1.net/m/resources/media/pdf/RUO-2017.pdf

The actual Reference Unbundling Offer on Virtual Unbundling can be found on the website of A1 Telekom Austria AG under 

http://cdn2.a1.net/final/de/media/pdf/Virtuelle_Entbuendelung.pdf

This official decision identifying significant market power defines the minimum components to be included in Telekom Austria's reference offer for this market:

Point 2.3: "In accordance with Art. 38 Par. 3 TKG 2003, Telekom Austria AG is obliged to publish a reference offer for the services listed in Point 2.1 on its company web site by January 31, 2007 and to update that offer on an ongoing basis. All services must be sufficiently unbundled, that is, broken down in such a way that customers need only pay for those services which they actually require. This reference offer must include the following minimum content to be described in greater detail:

  • A detailed breakdown of the services subject to this order as well as the fee to be paid for each service
  • Procedures for ordering, provision and termination of the services subject to this order, including penalty provisions for both sides
  • Provisions regarding the use of unbundled local loops or sub-loops (without upstream transmission or switching equipment) and joint access
  • Specifications regarding physical access to relevant interfaces
  • Specifications regarding physical access to a main distribution frame
  • Specifications regarding transmission systems and network compatibility.

Telekom Austria fulfilled its obligation to publish a reference offer within the specified period. The following link opens the actual reference offer for unbundling: 

www.telekom.at/Content.Node/dateien/ruo-2007.pdf