SUMMARY OF PTS DECISIONS CONCERNING BROADCASTING TRANSMISSION SERVICES, TO DELIVER BROADCAST CONTENT TO END USERS
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1 SUMMARY DEPARTMENT, TELEPHONE, Mattias Viklund Market Affairs Department smp@pts.se DATE 20th of October 2005 SUMMARY OF PTS DECISIONS CONCERNING BROADCASTING TRANSMISSION SERVICES, TO DELIVER BROADCAST CONTENT TO END USERS - The market for digital terrestrial television Section 1 This summary presents PTS decisions concerning the market for digital terrestrial television. PTS notified the decision concerning market definition and designation of undertakings with significant market power the 9 th of May These decisions are, however, presented in this summary as well (Section 2 and 3). The new information, regarding the decision on remedies in this relevant market, is presented in Section 4 and 5. Section 2 Market definition 2.1 Relevant product/service market The market for broadcasting transmission services, to deliver broadcast content to end users is included in the Commission s Recommendation on relevant markets as market number 18. This market has been found, in the Swedish case, to consist of seven candidate markets, three of which have been subject to analysis of the effectiveness of competition. The three markets concern wholesale broadcasting transmission services for: POSTADRESS Box 5398, Stockholm BESÖKSADRESS Birger Jarlsgatan 16 TELEFON FAX E-POST pts@pts.se WEBBADRESS
2 2 1. analogue terrestrial television 2. digital terrestrial television 3. national analogue terrestrial radio This is a summary of PTS decision concerning the market for digital terrestrial television. 2.2 Relevant geographic market The national territory of Sweden. 2.3 Summary of the opinion of the Swedish Competition Authority Apart from some general comments regarding methodology, the Competition Authority mainly agrees with the conclusions drawn by PTS concerning the market definitions. 2.4 Results of the public consultation PTS received in total eight responses concerning the notified market definitions. Most respondents mainly agreed with the proposed definitions. All responses are also published on PTS website. 2.5 Differences from the Commission s Recommendation on relevant markets As mentioned above, the products and services that make up the market for wholesale broadcasting transmission services for the purpose of delivering broadcasting content to end users included in the Recommendation has been found, in the Swedish case, to consist of seven candidate markets, three of which are found to be relevant for the purpose of competition analysis. These markets have been defined taking the utmost account of Section 2 of the SMP Guidelines. The three markets (listed in 2.1 above), as required in order to justify competition analysis, have passed all three of the main criteria mentioned in recitals 9 to 16 of the Recommendation. The four markets not subject to competition analysis concern wholesale broadcasting transmission services for: 1. national digital terrestrial radio 2. analogue terrestrial commercial local radio and community radio 3. analogue and digital cable television and radio 4. analogue and digital satellite television and radio The market for national digital radio is still of an experimental nature with very few users and without any real potential for growth. Ex ante regulation is therefore not justified.
3 3 The market for analogue terrestrial commercial local radio and community radio does not pass all three of the criteria in the Recommendation and is therefore excluded. The market for analogue and digital cable television and radio does not pass all three of the criteria in the Recommendation and is therefore excluded. The market for analogue and digital satellite television and radio is considered to be a transnational market and is therefore excluded. Section 3 Designation of undertakings with significant market power 3.1 Undertaking(s) designated as having significant market power (SMP) Teracom AB 3.2 Criteria for SMP designation Market share Control of infrastructure Access to financial resources Economies of scale and economies of scope Lack of countervailing buyer power Mature market and technical innovation of the market Lack of potential competition Leveraging market power 3.3 Main undertakings in the relevant market Teracom AB 3.4 Market shares Teracom s market share is 100 percent. 3.5 Summary of the opinion of the Swedish competition authority The Swedish Competition Authority mainly agrees on the designations of undertakings with significant market power. See comment under 2.3.
4 4 3.6 Results of the public consultation PTS received in total eight responses concerning the notified designations of undertakings with significant market power. Most respondents mainly agreed with the SMP designations or had no comments. All responses are also published on PTS website. Section 4 Regulatory obligations 4.1 Legal basis for the obligations Requirement to provide access to the digital terrestrial network on reasonable request (art 12) Cost oriented prices based on a FDC model (art 13) Requirement not to unduly discriminate (art 10) Accounting separation obligation (art 11) 4.2 Reasons for the imposition, maintenance or amendment of obligations See chapter 4 of the draft decisions. 4.3 Exceptional circumstances Section 5 Compliance with international obligations Imposition, amendment or withdrawal of obligations provided for in Article 8(5) of Directive 2002/19/EC (Access Directive) 5.2 Name(s) of the undertaking(s) concerned
5 5 5.3 International commitments that need to be respected Responses to this consultation are invited and may be sent to Post- och telestyrelsen at at the latest on the 20th of November 2005.
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