Article 7: M3 & M5 in Denmark (DK/2011/1180)

The Commission published today its comments on the LRAIC model in Denmark. Comments are limited to multicasting access and technological neutrality. They are reproduced below:

Access to the multicast functionality

According to NITA's response to the request for information, the take-up of bundled offers including IP-TV is low21. Furthermore (i) the self-supply of the multicast functionality would require an alternative operator to invest only at the level of the core network and (ii) it is both compatible with the bitstream access services delivered through the copper and fibre networks but not with cable
bitstream access services. In fact, TDC is not currently obliged to provide access to the multicast functionality over its cable-TV network due to technical limitations.

In view of the limited demand for bundled offers including IP-TV, the Commission notes that competition on the retail broadband market does not seem to critically depend on access to the multicast functionality. Moreover, it is not clear whether a bitstream-based alternative operator could profitably self-supply the multicast functionality by investing in the core network. Finally the obligation to provide access to the multicast functionality may not be in line with the principle of technological neutrality as the access network technologies would
be subject to different access obligations. In this regard, this asymmetry in remedies could artificially incentivise access to copper and fibre networks to the detriment of the cable network, especially if IP-TV becomes a more important driver for the demand for broadband connections.

Against this background, the Commission would like to ask NITA to carefully substantiate in the final measure in how far the multicast obligation is proportionate and justified.