3.6.4.4 Unbundling of the local loop (TASL)

A number of options for providing their customers with telecommunications services is available to ANBs. Basically, ANBs (but also ISPs) can link their customers to their network by means of their self-established infrastructure or offer their services as so-called carrier network operators.

Although it is desirable for an ANB, as a matter of principle, to have his own access network (higher flexibility and autonomy), full re-cabling of Austria in the area of the "last mile" would be very expensive and not reasonable from an economic point of view. In individual cases or for strategic considerations, it is often reasonable to connect (highly profitable) business customers directly by means of one’s own access network that has yet to be built. For the connection of the remaining large part of end-users connected to the established network operator mainly two alternatives are available.

Access of the end-user can either be implemented by means of a leased line, which is leased from the existing network operator and connects the end-user with the technical facilities of the ANB; this is considered rather expensive.

The second option is to lease the already existing TASL from the existing network operator (Telekom Austria) and to provide the telecommunications services via self-connected transmission facilities. This is called "unbundling".

The following types of unbundling can be distinguished:

  • full unbundling of the local loop,
  • shared use of the local loop,
  • access to parts of the local loop ("sub-loop unbundling").

In the event of full unbundling, the copper pair at the main distribution frame is no longer conducted to the local switch of Telekom Austria but is directly – electrically coupled – handed over to the unbundling partner.

If unbundling is put into practice by means of "shared use", only one high-bit-rate service (e.g. ADSL) is provided by the unbundling partner, voice telephony service remains with the incumbent network operator (Telekom Austria). Telephone and data traffic are separated by a frequency filter ("splitter") upstream of the Telekom Austria switch.

With sub-loop unbundling, access to parts of the local loop is made available at the relevant switching units22.

Local loop unbundling does not only allow for price differentiation (as in the operation of carrier networks) but also creates the conditions for the development of new markets for services and for a further differentiation of the product range from that of the SMP operator.

 

 

 

This enables ANBs and service providers to flexibly design innovative offers that are custom-made for individual customer groups. From the point of view of promoting high-quality locations and supplying the population with high-quality and innovative services, high-bit-rate usage options offered by the local loop must therefore be appreciated.

Info-Box 17: Definition of "local loop" (TASL)

The local loop is the twisted metallic pair circuit connecting the socket (network termination point) at the subscriber’s premises to the main distribution frame at the pertaining switch or the site of remotely operated concentrators.

Different services can be provided via the local loop: normal voice telephony (POTS), ISDN services or, also, high-bit-rate services, such as fast Internet access by means of xDSL. Although still the same costs arise for the physical medium (the copper pair – CuDA), the end-user tariff and the obtainable profits differ considerably.

According to the "Regulation of the European Parliament and of the Council on unbundled access to the local loop" Regulation (EC) No. 2887/2000, which entered into force on 02.01.2001, operators of public fixed telephone networks who, as determined by the national regulatory authority, have SMP in the provision of these networks and the corresponding services (as defined in Annex I Part 1 of the Directive 97/33/EC) must provide for unbundled access to their local loops and related facilities. The obligation of such an operator to grant other users access to his telecommunications network or unbundled parts thereof - in particular to the local loop with or without further technical facilities – had existed in Austrian law already before this Regulation went into force, i.e. according to Art. 37 TKG in connection with Art. 2 and 3 ZVO.

According to the definitions of Article 2 subpar. f of Regulation (EC) 2887/2000, full unbundled access to the local loop means "the provision to a beneficiary of access to the local loop or local sub-loop of the notified operator authorising the use of the full frequency spectrum of the twisted metallic pair" and, thus, also comprises access to the sub-loop, a sub-component of the local loop, which connects the network termination point at the subscriber’s premises with a concentrator or a defined intermediate point of access to the public fixed telephone network.

The prices for the unbundled access to the local loop and the related facilities, which may be charged by the SMP operators, shall be cost-oriented, pursuant to Article 3 (3) Regulation (EC) 2887/2000. When determining cost-oriented charges, regulatory practice throughout Europe must uniformly apply the FL-LRAIC approach.

22 Line concentrators, remote concentrators, in-house distribution points
   
 
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3.6.4.5 Reference unbundling offer of Telekom Austria
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