PTA proposes changes in tariff calculation for bitstream access

23 Jun 2014

Icelandic telecoms watchdog the Post and Telecom Administration (PTA) has submitted a draft decision to the EFTA Surveillance Authority (ESA) regarding Mila’s wholesale tariffs for bitstream access via Route Option 1 and Route Option 3. According to a press release, following a consultation on the topic which ran until 13 January 2014, the watchdog decided to make alterations to the calculations of the drafted tariff for wholesale switches. The PTA pointed out that it took into account varying use of wholesale switches, both with respect to Mila customers and to service options. Under the proposed amendments, Access Option 1 must be priced at ISK912 (USD8.02) per user, while ADSL/VDSL connection via Access Route 3 must be priced at ISK1,367 per unit. The wholesale operator is required to provide a new wholesale reference offer after a final decision is published next month; the new rates must take effect on 1 August.

As previously reported by TeleGeography’s CommsUpdate, Mila was designated as having significant market power (SMP) in the wholesale leased line market in January 2014, and as a result is subject to certain obligations in the wholesale market for broadband access.