JAA morgan stanley

Competition in the Danish Telecom Sector - Status and perspectives: 

Competition in the Danish Telecom Sector - Status and perspectives Morgan Stanley, 9 May 2005 Director General Jørgen Abild Andersen National IT and Telecom Agency

Slide2: 

The Danish telecom sector – stakeholders and opinions Carrying out the Market Analyses Status on the Competition in the Danish telecom sector - status International comparisons – how is Denmark doing? Important challenges Agenda

Danish Newspapers : 

Danish Newspapers Prices are too high! It is not possible to make money in the Danish telecom sector! Cheap broadband will ruin the competition! Longer maximum period on subscriber commitment will promote innovation and competition! Longer maximum period of subscriber commitment will prevent freedom of choice and have a negative impact on market transparency and competition! The regulation of the Danish telecom sector is too tight! It is necessary to strengthen the regulation even more!  Many stakeholders and many opinions!

Slide4: 

Stakeholders and opinions in the Danish telecom sector Carrying out the Market Analyses Competition in the Danish telecom sector - status International comparisons – how is Denmark doing? Important challenges Agenda

Conducting the market surveys: 

Conducting the market surveys Definition of relevant markets Data collection Data processing Analyses of effective competition and designation of SMPs Consultation of the industry and Danish Competition Agency Draft decision Consultation of the industry, Danish Competition Agency and EU Commission Final decision

Market surveys – Status (I): 

Market surveys – Status (I) Expected initiation of consultations for retail markets

Market surveys – Status (II): 

Market surveys – Status (II) Expected initiation of consultations for wholesale markets

Market analyses – Conclusions (I): 

Market analyses – Conclusions (I) Retail markets

Market analyses – Conclusions (II): 

Market analyses – Conclusions (II) Wholesale markets

Slide10: 

Stakeholders and opinions in the Danish telecom sector Carrying out the Market Analyses Competition in the Danish telecom sector - status International comparisons – how is Denmark doing? Important challenges Agenda

”Several pipes to the home”: 

”Several pipes to the home” DSL - PSTN Cable modem - CATV FWA/WiMAX Optical fibres – Fiber/LAN, FTTH Mobile - GPRS/EDGE/3G WLAN - Public Hot-spots Power Line Communications Satellite Terrestrial Digital Broadcasting

Availability of broadband services mid-2004- ADSL, Cable Modem and FWA: 

Availability of broadband services mid-2004 - ADSL, Cable Modem and FWA Source: National IT and Telecom Agency, October 2004.

Penetration of ADSL, cable modem and LANmid-2004Percent of the number of households and enterprises: 

Penetration of ADSL, cable modem and LAN mid-2004 Percent of the number of households and enterprises Source: National IT and Telecom Agency,October 2004.

Broadband Subscribers, 2001-2004: 

Broadband Subscribers, 2001-2004 Source: National IT and Telecom Agency, 2005

Price development - the lowest price: 

Price development - the lowest price Kilde: National IT and Telecom Agency, January 2005

Market Shares of the Incumbent 2001-2004: 

Market Shares of the Incumbent 2001-2004 Source: National IT and Telecom Agency, February 2005

Electricity distributors entry into the broadband market : 

Electricity distributors entry into the broadband market Source: Dansk Bredbånd and electricity distributors web-sites

Slide18: 

Stakeholders and opinions in the Danish telecom sector Carrying out the Market Analyses Competition in the Danish telecom sector - status International comparisons – how is Denmark doing? Important challenges Agenda

ULL-Prices- Rent per month – EURO ex. VAT: 

ULL-Prices - Rent per month – EURO ex. VAT August 2004

Broadband competition in EU15: 

Broadband competition in EU15 Source: European Commission, March 2005

Broadband Mapping of EuropeDecember 2004: 

Broadband Mapping of Europe December 2004

Broadband in the World: 

Broadband in the World

Slide23: 

Stakeholders and opinions in the Danish telecom sector Carrying out the Market Analyses Competition in the Danish telecom sector - status International comparisons – how is Denmark doing? Important challenges Agenda

A competition driven market: 

A competition driven market Access-based competition - Wholesale broadband access Facility-based competition - Competition between alternative platforms

Broadband prices – focus areas: 

Broadband prices – focus areas Pricing ”raw copper”: LRAIC price method versus historical costs method. Survey on pros and cons by choice of method. 50/50 allocation principle – PSTN and ADSL. Survey on pros and cons if the current principle is changes. Double recovery of costs – Survey will show whether TDC get economical recovery on “raw copper” more than once? TDC’s bearer service – Bitstream-access without PSTN (Market 12 issue)

ERG 2005 – Important focus areas: 

ERG 2005 – Important focus areas Wholesale Broadband Markets (Naked DSL, NGN) VoIP – ERG Common Statement for VoIP regulatory approaches (Februar 2005) ERG Common Positions on wholesale international roaming Further development of the ERG Common Position on Remedies