ILR publishes new regulations for wholesale access; sets price ceilings for unbundling

1 Apr 2019

Sector watchdog the Luxembourg Institute of Regulation (Institut Luxembourgeois de Regulation, ILR) has published a series of decisions regarding the country’s wholesale broadband markets. For operators designated as having significant market power (SMP), the ILR has introduced a new series of procedures to monitor and control equivalence of inputs (EoI). A separate regulation, meanwhile, established the conditions and standards for SMP operators to conduct obligatory economic replicability tests. The tests must be applied to its ‘flagship’ retail products that include a broadband service (i.e. both standalone and bundled products). Flagship products refers to all high speed products contributing together, in descending order, 70% of total revenue from retail broadband products and any retail broadband product that individually represents at least a 10% share of the operator’s total retail broadband revenue.

The regulator also set new tariff ceilings for local loop and local sub-loop unbundling services. For full unbundled access to the local loop, the ILR set a maximum fee per connection of EUR8.26 (USD9.27) per month for the period from 1 January 2018 to 31 December 2018, whilst the rates for 2019 and 2020 would increase to EUR8.43 and EUR8.60, respectively. The monthly fee for unbundled access to the local sub-loop was set at EUR5.25 for 2018, EUR5.34 for 2019 and EUR5.44 for 2020.