Remedies and Market Monitoring

The main purpose of the Remedies and Market Monitoring Working Group (RAMM WG) is to provide guidance for the effective and consistent implementation of remedies and to create transparency through market monitoring. For this purpose the RAMM WG develops best regulatory practices, ensuring national regulators take a consistent approach to further the development of the internal telecommunications market in Europe and national markets that are effectively competitive. It monitors the application of European Union (EU) wide regulations and defines data collection methodologies, for example, for mobile and fixed voice termination rates, where single maximum Union-wide rates have been set. Recurring, the RAMM WG is calculating the Weighted Average Cost of Capital (WACC) parameters to provide incentives for efficient investments into high-speed broadband networks with quality coverage and both promote and serve consumer interests to use fast internet access. The WACC parameters are published in the Body of European Regulators for Electronic Communications (BEREC) Report. The RAMM WG is the result of a merger of the former Remedies WG and the Statistics and Indicators WG.

Working Group Co-chairs

The image shows Annegret Groebel, Co-chair of the BEREC Remedies and Market Monitoring Working Group
The image shows Marco Benacchio, Co-chair of the BEREC Remedies and Market Monitoring Working Group

Annegret Groebel

BNetzA, Germany

Marco Benacchio

AGCOM, Italy

Work in 2024

In 2024, the RAMM WG will continue working on related topics, based on the BEREC Work Programme 2024.

Article 32/33 Phase II process

BEREC will analyse and monitor the Phase II cases process and look together with the Agency for Support for BEREC (BEREC Office) into the effectiveness of the updated Internal Guidelines. Depending on the number and significance of Phase II cases that will take place in 2024, BEREC will decide whether there is a need to conduct an internal workshop in quarter four of 2024.

Implementation report on the BEREC Guidelines on Geographical surveys of network deployments

BEREC published three ‘Guidelines on Geographical surveys’ based on Article 22 of the European Electronic Communications Code on the mapping of broadband network deployments. These three BEREC Guidelines on Geographical surveys of network deployments are also published and compiled in one volume – the Handbook of BEREC Guidelines on Geographical surveys of network deployments (BoR (21) 104). In point 1.5 (‘Guidelines Revision’), BEREC commits itself to prepare an Implementation Report “to examine how different Member States have transposed and enabled the Article 22 provisions. Following the Implementation Report BEREC will consider to revise and update the Guidelines”. In the Implementation Report BEREC will also consider “to elaborate further on the need of a unique data base by country”.

Following this wide-ranging assessment, BEREC will propose revisions and updates of the Guidelines, where deemed necessary.

Calculation of Weighted Average Cost of Capital (WACC) parameters according to the European Commission Notice

Following the publication of the European Commission’s Notice on the WACC, BEREC has been tasked with calculating various parameters of the WACC formula according to the prescribed methodology.

In 2024 (and in subsequent years), BEREC will continue to calculate the WACC parameters as started in 2020. These parameters will be calculated at the beginning of each year and published in a separate report to allow the National Regulatory Authorities (NRA) to base their national WACC decisions on this up-to-date information. BEREC will also select the companies that are eligible for the peer group.

Report on Regulatory Accounting in Practice

A report is prepared annually and updates the previous versions published since 2005. The Regulatory Accounting (RA) in Practice Report 2024 will provide an up-to-date factual overview of the regulatory accounting frameworks used in Europe and an assessment of the level of consistency achieved by NRAs. 

In 2024, emphasis will continue to be placed on consistency in regulatory accounting with respect to key access products (e.g. fibre) and the report will be streamlined in terms of access products looked at (for instance by reviewing the relevance of indicators and parameters covered) while keeping the in-depth analysis of the methods used to identify commonalities and the reasons for differences. Given the applicability of the European Commission’s (EC) WACC Notice of 2019, there will be an investigation into how far the report will continue to collect data on the methodology and input parameters used to calculate the rate of return on capital employed, and look into the impact of both of these on the result. Moreover, the 2024 RA report will be based on the EECC list of remedies, but will aim for consistency over time. The report will also take into account the list of relevant markets susceptible to ex ante regulation pursuant to Commission Recommendation (EU) 2020/2245 on relevant product and service markets within the electronic communications sector susceptible to ex-ante regulation.

Report on Connectivity Indicators for the Digital Decade Policy Programme

In March 2023, BEREC published its feedback on the EC’s Draft Implementing Decision setting out the KPIs for the Digital Decade Policy Programme (DDPP). In its feedback, BEREC focused on the connectivity Key Performance Indicators (KPI) to measure the progress towards the DDPP targets. Based on the BEREC Guidelines on Geographical survey on broadband network deployments, BEREC proposed certain amendments to the definitions and KPIs in the EC’s Draft Implementing Decision and suggested, among other things, more technologically neutral definitions.
In this work programme item, BEREC will look at the EC’s final Implementing Decision and analyse the proposed connectivity KPIs with specific reference to their measurement in order to effectively monitor the progress towards the DDPP targets.

Workshop on economic replicability test practices in the context of Article 61(3) of the EECC

This work programme item will serve the exchange of current practices on the economic replicability test (or economic viability) applied by NRAs in the context of Article 61(3) of the EECC to get a better understanding of the practices and the criteria that are relevant for this assessment. However, as it is unclear whether, and which, NRAs have already applied the ‘economic replicability test’ in the context of Article 61(3) of the EECC, a short survey should be conducted before setting a date for a workshop.

BEREC Report on NRAs’ annual reporting on the implementation of Article 75 of the EECC

This report will summarise the information received from NRAs under their reporting obligations contained in Article 75 of the EECC.

Why is this important?

Imposing remedies on Significant Market Power operators is a regulatory means to maintain effective competition by providing a level playing field for competitors. More sustainable competition ultimately leads to lower prices and better consumer services, prevents abuse of market power, and provides incentives for investments in high-speed broadband networks delivering connectivity services to consumers and business users.