The Commission for Communications Regulation (ComReg) today published a consultation on its latest review of competition within the Wholesale Dedicated Capacity (‘WDC’) Market – ComReg Document 24/92.
WDC, also known as wholesale leased lines, is a wholesale service that involves the supply of dedicated data connectivity between fixed locations. Leased lines are typically used by large businesses who require a dedicated connection with exclusive use of a private, fixed-bandwidth data link. Unlike shared services such as standard broadband, a leased line does not have traffic contending for bandwidth, ensuring consistent high speeds and reliability.
Service providers may purchase wholesale leased line services from one another to extend their network presence into areas where they have no network of their own.
WDC services also enable the provision of retail leased line data connectivity services (and other associated services) to medium and large businesses or public sector organisations which in turn use them to transfer data or use various communications related services (such as cloud computing, data back-up) across their business locations. Leased lines play a vital role in enabling the provision of information and communications technology services to medium and large businesses and public sector organisations.
In this review, ComReg has distinguished between areas where three or more fibre leased line networks are present, typically in urban areas, and areas where there are only one or two networks present, generally more rural areas.
ComReg has taken into account the proximity of leased line networks to existing leased line connected premises. ComReg has proposed that regulation is unnecessary in these generally more urban areas, while also proposing the need for regulation in the generally more rural areas owing to a lack of effective competition.
In the regulated areas, covering approximately 50% of the country where leased line network competition is weaker, ComReg proposes to designate Eir as having Significant Market Power (SMP), having regard to its strong position relative to existing and potential competition.
To ensure fair competition, ComReg proposes that Eircom be subject to a range of SMP-based regulatory obligations in these areas, with such obligations largely similar in nature to those currently imposed under a 2020 decision.
These include obligations on Eircom to provide other service providers with access to wholesale leased lines at regulated prices, to publish such prices and other terms and conditions, as well as requirements to not discriminate in how it treats wholesale customers relative to its retail arm.
ComReg has also proposed to discontinue regulation of copper based leased lines given the low and declining levels of demand for these services.
The consultation period will run until 31 January 2025. View the consultation document here.
