NPT repeals regulation on some leased line markets

28 Sep 2011

Following on from the recommendations made by Norway’s EFTA Surveillance Authority (ESA) back in November 2008, the Norwegian Post & Telecoms Regulatory Authority (NPT) has announced that the country’s fixed line incumbent Telenor will no longer face regulation in the retail market for leased lines (previously known as Market 7) or the wholesale market for leased lines above 8Mbps (Market 14). With Telenor having previously been designated as having significant market power (SMP) in both sectors, on the back of the NPT’s review of market regulation it has concluded that neither market qualifies for specific ex ante regulation. While both areas of service had been excluded from the standard recommendations on market regulation, the NPT was tasked with considering each market separately to see whether effective competition exists. According to the watchdog neither Market 7 nor Market 14 meet the terms of a so-called three-criteria test and as such the regulation for the former market will be repealed immediately, while regulation relating to Market 14 will be discontinued in six months time.

Meanwhile, the NPT noted that in the wholesale market for leased lines up to and including 8Mbps (Market 6) there remain a number of potential competition problems, in line with which it will continue to designate Telenor as having SMP status in that area. As such, special obligations for the incumbent, including price regulation in the form of demands for cost-oriented prices will continue.