In July 2011 eircom announced that it would deploy an NGA network infrastructure and upgrade fixed-line broadband speeds in Ireland. ComReg is reviewing whether NGA could have implications for the rationale for, and specific form of, price regulation in the markets of local access and wholesale broadband access, and, if so, what these would be.
Oxera’s report assesses whether the NGA products warrant regulatory remedies similar to those imposed on legacy access inputs, and, where price regulation is considered appropriate, assists ComReg in designing these remedies such that they are commensurate with any competition problems identified.
The report presents a framework to introduce appropriate remedies now, and, if there are changes in market circumstances or in the risk profile of NGA networks and services, to adjust the remedies appropriately going forward. It assesses the specific assumptions underlying price controls and the implications retail pricing constraints may have on price regulation of wholesale inputs. Further, recommendations on the principles for the margin squeeze test are provided. The findings of the report are taken into account in ComReg’s consultation.
Download the full report here.