Orange Belgium calls for material improvement of the wholesale cable tariffs included in the draft CRC’s decision, submitte...
07 Avril 2020 - 8:45PM
Orange Belgium calls for material improvement of the wholesale
cable tariffs included in the draft CRC’s decision, submitted to
the European Commission
Press ReleaseBrussels, April 7, 2020
Orange Belgium calls for material improvement of the
wholesale cable tariffs included in the draft CRC’s decision,
submitted to the European Commission
The CRC submitted its draft decision on
the wholesale cable tariffs to the European Commission, nine months
after the public consultation. Orange Belgium regrets the major
change in the methodology of cost recovery leading to significantly
over-compensate the actual costs of the cable
networks.
In the market analysis decision of June 2018 and
the draft wholesale cable tariffs decision of July 2019,a further
decrease of the cable wholesale charges was put forward in order to
bring these tariffs to a level of fair charges (‘costs + reasonable
margin’). Orange Belgium considers that reasonable wholesale cable
tariffs are essential to guarantee a more sustainable internet and
TV offer in the future.
Based on a first assessment of the draft
submitted to the European Commission and published today, Orange
Belgium notes that the Belgian regulators have adapted the draft
proposal of mid 2019 significantly.
The most impactful changes in the draft
decision
The most impactful regress is the incorporation
of costs as if the cable operators would deploy a new network.
Orange Belgium believes this change is not justified by the actual
costs of the cable network, as those assets do not need to be
renewed, as the CRC mentions in its draft decision. This change
results from an explicit intention to artificially increase the
wholesale tariffs beyond their fair value to the detriment of the
end customers, with the objective to support FttH roll out. Should
the European Commission confirm this towards the final decision,
this would result in the extension of an unjustified deadweight
effect to the benefit of the cable owners. This monopoly rent will
be paid at the end of the day by the Belgian customers.
A preliminary analysis of this updated draft
shows that most wholesale charges increase in a more or less
substantial way compared to the draft proposal of July 2019,
leading to wholesale charges that are clearly above and beyond the
level of ‘fair charges’.
Fair competition on the Belgian Internet &
TV market at risk
Orange Belgium counted on an updated wholesale
charges proposal that would allow continuing developing its fixed
services: to offer the Belgian consumers a qualitative and
attractive Internet and TV alternative, to improve the quality of
service; and to better answer to an unmet need of the market for
internet only offers. These evolutions are clearly put at risk if
the draft decision submitted to the European Commission today is
not materially improved.
The European Commission has now until early May
2020 to adopt its position. The Belgian regulators will then have
to integrate the comments of the European Commission if any and
publish their final decision.
About Orange BelgiumOrange Belgium is a leading
telecommunications operator on the Belgian market with over 3
million customers; Orange is also active in Luxembourg through its
subsidiary Orange Communications Luxembourg.As a convergent actor,
we provide mobile telecommunications services, internet and TV to
private clients as well as innovative mobile and fixed-line
services to businesses. Our high-performance mobile network
supports 2G, 3G, 4G and 4G+ technology and is the subject of
ongoing investment. Orange Belgium is a subsidiary of the Orange
Group, one of the leading European and African operators for mobile
telephony and internet access, as well as one of the world leaders
in telecommunications services for enterprises.Orange Belgium is
listed on the Brussels Stock Exchange (OBEL). More information on:
corporate.orange.be, www.orange.be or follow us on Twitter:
@pressOrangeBe.
Press contactYounes Al
Bouchouari – younes.albouchouari@orange.com- +32 477 69 87
73Annelore Marynissen – Annelore.marynissen@orange.com - +32 479
016 058press@orange.be
- Orange Belgium - Draft decision Wholesale Tariffs - UK