Nkom finalises decision on price regulation of Telenor’s fibre-based services

24 Aug 2021

Norway’s National Communications Authority (Nasjonal kommunikasjonsmyndighet, Nkom) has confirmed its final decision on updated price regulation of access to Telenor Norge’s fibre network. The move comes in the wake of its decision in June 2021 to send its draft pronouncement to the EFTA Surveillance Authority (ESA) for its consideration. In a press release the regulator noted that having received feedback from the ESA, this had not led to a need for changes from the draft regulation it had proposed, and as such it confirmed its newly-issued final decision will take effect immediately.

As previously reported by CommsUpdate, under the new legislation changes have been made to the principles of margin squeeze testing for Telenor’s Virtual Unbundled Local Access (VULA) fibre service. A first change will see the market share that is assumed for an ‘efficient provider’ in the Nkom’s twice-yearly margin squeeze tests and gross margin tests reduced from 20% to 15%. A second amendment, meanwhile, will see a stricter requirement introduced for the gross margin for individual fibre products offered by Telenor to companies, so that the gross margin for these products shall be at least 40%. Finally, the Nkom has introduced a new requirement for Telenor carrier to document passed margin squeeze tests and gross margin tests before the company can implement price changes or launch new fibre-based products in the retail market. According to the regulator, this new requirement will prevent access buyers from experiencing margin squeeze in the period until Nkom carries out its next margin squeeze test.