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Poland: EC questions new telecoms markets

Poland
08/01/2010
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Two new markets defined by Poland’s telecoms regulator have been questioned by the European Commission.

In November 2009, the President of the Office of Electronic Communications (UKE) issued draft decisions defining a market for IP transit and a market for IP peering.

While defining the relevant market, the UKE takes into account the European Commission’s recommendations on markets susceptible to regulation. The latest one dated 17 December 2007 lists one retail and six wholesale markets but did not include IP traffic exchange markets.

The Commission also questioned whether UKE had sufficiently demonstrated that the incumbent, Telekomunikacja Polska S.A , had significant power in these markets.

This appears to be the first time any European regulator has deemed IP traffic exchange to be non-competitive in order to regulate it.

The Commission will examine the draft decisions in detail and, may ask UKE to withdraw the proposed measure if it decides not to accept the market definitions or the significant market power ascribed to TP.

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