Comments on German market 5

The Commission published its comment on German market 5. The Commission criticize cost-orientation through ex post control: BnetZa must set ex ante control through a cost model.

Verbatim: "the Commission reminds BNetzA that ex-post price controls are not appropriate to remedy the competition problems identified in the wholesale market in question. In particular, in order to ensure regulatory certainty for access seekers
and, thus, promoting efficient investment by all operators access prices need to be truly cost-oriented and transparent on an ex-ante basis. In accordance with the regulatory framework, such prices can be appropriately adjusted for investment risk, in order to drive both competition and investment in (next generation) infrastructure. As a result, the Commission invites BNetzA to impose an ex ante price control based on cost orientation and, in order to increase transparency, to set out in the final measure a cost model on which cost-orientation will be based

In addition, the Commission sets a 6 months notice period as reasonable for pricing changes to guarantee non-discrimination.

Verbatim: "incumbent should be obliged to up-date its wholesale Bitstream offer in time before it launches a new retail service based on fibre in order to allow competing operators enjoying access a reasonable period to react to the launch of any such product. The Commission considers that six months could be seen to be a reasonable period to make the necessary adjustments, unless other effective safeguards exist, which guarantee non-discrimination in this regard".

Other relevant comments on geographic segmentation and inclusion of cable.