PUR PUR e e Meca Mecani nismo de o de COMPETITION IN THE ACCESS - - PowerPoint PPT Presentation

PUR PUR e e Meca Mecani nismo de

• de

su sust stentab abilid ilidad ade

Reg Regra ras s defini efinidas p s pela ela Co Comi missã ssão Euro Europei eia

Dezembro de 2016 DJR

NEW MODELS OF INVESTMENT AND COMPETITION IN THE ACCESS FRAMEWORK

BERE REC, , Octob tober 2017

18.3 46.2 35.5

2P 3P 4/5P

14.3 41.3 44.4

2P 3P 4/5P

The The Po Port rtuguese Ma Mark rket et in in nu numbers rs

2 Coverage >30 Mbps for all Take up of >100 Mbps service

% popula latio ion able le t to choos

• se n NGN o

N operators rs

Nr operators 43% 43% 57% 57% 81% 81% 3 2 1

2020 2020 100% 50% HSPA LTE 98,8% 98,0% 98,8% 96,0% 2Q 2Q2017 2017 81% 42%

Source: ANACOM Unit: population Source: ANACOM

2016 2016 2016 2016

2H 2H2014 2014

(% (% xP xP)

2H 2H2017 2017

(% (% xP xP)

Source (Portugal): ANACOM Penetration: Special Eurobarometer 438 (Most recente information)

17% 17% 19% 19% 17% 17% 18% 18% 16% 16% 18% 18% 15% 15% 15% 15% 20% 20% 21% 21% 26% 26% 23% 23% 2014 2014 2015 2015 2016 2016 2017e 2017e European Incumbents European challengers NOS

Pressur ssure o e on revenu nues h es has n not d diminished N minished NOS c commit mitment ment w with h inve investment a as s a gro rowt wth lever lever

Ca Capex ex to to sales ( (%)

Source: Barclays Global Telecom

6,276 5,915 5,520 5,206 5,035 4,822 4,852

2010 2011 2012 2013 2014 2015 2016

Reven enues es (M€) EBIT ITDA DA ( (M€)

2,457 2,395 2,211 2,039 1,826 1,853 1,983

2010 2011 2012 2013 2014 2015 2016

• 23%
• 7%
• 19%
• 3%

Source: NOS Annual accounts Source: NOS Annual accounts

Ca Capex ex (M€)

1,261 1,128 1,043 958 1,102 1,118 1,159

2010 2011 2012 2013 2014 2015 2016

• 8%

+21%

1998 … 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Optimus launch Optimus supports the deployment of a single nationwide

• NGNetwork. PT

Gov and NRA do not support and efforts fail Negotiations for the sharing of civil infrastructure for mobile network fail ZON and Optimus merge NOS launches converged

• ffers

NOS launches TV cloud recording Fisrt multiscreen

• ffer in Portugal

launched by Zon (now NOS) 2001 Optimus is 1st

• perator in

Portugal deploying FTTH network OPT agrees with VDF on FTTH Sharing agreement

• f 400k hh

World launch by Zon

• f 7 day automatic

recording Commercial launch

• f rural NGN

networks NOS launches 1st PT 4k channel and new set top box with personal profiles NOS launches TV

• n Hololens

UMA

NOS launches OTT player 2017 NOS and VDF sign sharing agreement 2,6 kk HH

Ho How w do we we lo look at inve investment

4 4 PAY TV TV opera rators rs Ow Own dep eploym yment NGA GA (F (FTTH/H /HFC) 2, 2,85M 85M H HH

More

• re

de dense Less de dense

~6, ~6,38 38 millio lion ho hous useho holds ds

(YE E 2018 2018 4, 4,4M 4M)

Ho How w do we we lo look at inve investment

~2 M H ~2 M HH - MEO M Monop

• pol
• ly?

Compe mpeti tition tion in n fixe xed lin line PAY Y TV TV YE 2018 E 2018 14% 14% H HH 49% 49% H HH 3 3 PAY TV TV opera rators rs

2 P 2 PTV TV

31% 31% H HH 1 1 PAY TV TV o

• per

erat ator Maintains duct and poles access (SMP) and symmetrical

• bligations for vertical network

but adds

• Co sharing agreements
• State aid for white NGA areas
• Duct and pole access (SMP approach)
• Symmetrical obligations for vertical network (third party infrastructure not
• perator’s)

Maintains duct and poles access (SMP) and symmetrical obligations for vertical network but adds

• Co sharing agreements?
• State aid?

Reg Regulat atory/le legal l approa pproach 1, 1,3M H 3M HH - Co i inves estmen ent 295k 295k H HH Wholes esale acces access 6% 6%

Ho How w ca can reg n regula ulatio ion help help?

Acces cess Re Regu gulati tion Co inves estm tmen ent

• Access to essential facilities (ducts and

poles) is essential and should not be questioned

• Deregulation per se is not na investment
• lever. Only if all operators are in equal

footing

• The existing SMP toolkit seems adequate to

address the bottlenecks that exist

• Co investment requires incentives

alignment between envolves parties

• NOS is skeptic of co investment that thus

not result from comercial initiative of the parties involved

• However, when such co investment occurs,

and has practical effect in the end user by increased retail competition, it should be recognized by the NRA in its SMP analysis REGULATION CAN HELP BY CONSIDERING REAL CO-INVESTMENT AGREEMENTS ON THEIR SMP ANALYSIS. BUT SHOULD NEVER TAKE AUTOMATIC AND BROAD REGULATORY CONSEQUENCES OF THE MERE EXISTENCE OF AN AGREEMENT OR AN WHOLESALE OFFER THAT IS YET TO TRANSLATE IN ADDITIONAL COMPETITIVE BENEFITS FOR THE END USER.