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PROGRESS REPORT
October 2005
Summary of progress made in implementing the National Broadband Strategy

  1. More competition within and between the different communications networks
  2. Speeding up the introduction and spread of new broadband technologies
  3. Development of electronic transactions and on-line business
  4. Effective participation of businesses and individuals in the information society
  5. Promoting information security and privacy protection
  6. Special measures for regional development
  7. Contributing to and monitoring international developments
  8. Monitoring the strategy
  9. Additional measures


More competition within and between the different communications networks

The measures outlined will improve the level of service, the geographical availability of broadband, and customer choice. They will also reduce prices and stimulate demand for broadband services. The increase in demand due to the lower prices will allow broadband connections to be offered more widely and to be extended to sparsely populated areas.

Completion stages: 1 = Planning stage, 2 = In progress, 3 = Completed

Measure

Responsibility

Timetable

Details of progress

Contact person

Completion stage

1. Efficient competition in broadband provision (especially subscriber connections) will be secured when the Communications Market Act is put into effect.

Finnish Communications Regulatory Authority, Office of Free Competition

Continuing

High subscriber connection charges are still limiting broadband competition. On the basis of its 2004 decisions on significant market power, the Finnish Communications Regulatory Authority has made a total of 15 decisions on subscriber connection charges in January-August 2005. In some of these it has also given its opinion on subscriber connection monthly charges. The Authority has set a maximum charge in the case of the connection charges of nine telecommunications companies. Some of the companies have appealed against the decisions.

The Finnish Communications Regulatory Authority and the Office of Free Competition have been working more closely together with the aim of increasing the level of competition in the broadband market.

The Finnish Communications Regulatory Authority investigated the waiting periods for subscriber connections offered by all the telecommunications companies with significant market power, and the equitability of these periods. In addition, the Authority updated its recommendation on this and issued decisions to five telecommunications companies, obliging them to introduce a more equitable delivery practice.

Finnish Communications Regulatory Authority: Johanna Juusela

Office of Free Competition: Martti Virtanen

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2. The efficiency of competition in broadband provision will be supervised using the means provided in the competition legislation in cooperation with the Finnish Communications Regulatory Authority.

Office of Free Competition , Finnish Communications Regulatory Authority

Continuing

The Office of Free Competition has intervened in the competition problems it has observed in the broadband market.

As a consequence of the action taken, local telecommunications operators have significantly reduced the network rental fees charged to service-provider competitors, which has eased market entry for competitors and thus increased competition considerably. The Office of Free Competition is monitoring the competitive situation in the broadband market and will, if necessary, propose to the market court that it order any business operator who acts contrary to the Act on Competition Restrictions to pay a penalty fee. So far, the Office has made one such market court proposal (proposed penalty fee of EUR 1,000,000). The Office has about 10 broadband market cases pending.

Office of Free Competition: Martti Virtanen, Timo Mattila

Finnish Communications Regulatory Authority: Martin Andersson

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3. Technical modernization of cable TV networks will be promoted to ensure that broadband provision is technically feasible in all the main cable TV networks by the end of 2004.

Ministry of Transport and Communications , Finnish Communications Regulatory Authority

2004

- Assessment of the need to develop the legislation was begun in March 2004 together with commercial actors.

- Progress had been made in broadband provision even without further legislative measures.

Ministry of Transport and Communications: Antti Kohtala

Finnish Communications Regulatory Authority: Martin Andersson

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4. The necessary legislative amendment proposals will be made for promoting competition in Internet connections and broadband provision in cable TV networks on the basis of investigations.

Ministry of Transport and Communications

October 30, 2004

- First cable TV network opened to competition.

- No need for legislative amendments. Cannot use legislative measures to demand that networks (those without significant market power) open up to competition.

Antti Kohtala

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5. Telecommunications companies will be brought together to agree a unified code of conduct for encouraging network and service operators to supply broadband facilities and services.

Finnish Communications Regulatory Authority

March 31, 2004

- Operators met at the Finnish Communications Regulatory Authority’s premises on March 22, 2004, 9.30-12.00.

- Further action: working group on broadband connection operator interfaces was set up on May 24, 2004, comprising telecommunications company representatives and under the direction of the Finnish Communications Regulatory Authority.

Martin Andersson

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