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

Annegret Groebel BNetzA, Germany	Marco Benacchio AGCOM, Italy

Work in 2023

In 2023, the RAMM WG will continue working on related topics, based on the BEREC Work Programme 2023.

BEREC Opinion on the review of the Access Recommendation

On 23 February, the Commission published its proposal for a new Recommendation on the regulatory promotion of Gigabit connectivity, replacing Commission Recommendation 2010/572/EU on regulated access to Next Generation Access Networks (NGA) and Commission Recommendation 2013/466/EU on consistent non-discrimination obligations and costing methodologies to promote competition and enhance the broadband investment environment (NDCM). The Commission requested BEREC’s Opinion on the draft Gigabit connectivity recommendation and the RAMM WG is working to provide the opinion on time.

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 two cases that will take place in 2023, BEREC will decide whether there is a need to conduct an internal workshop in Quarter four of 2023.

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 2023 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 National Regulatory Authorities (NRAs). 

In 2023, 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 (ECs) 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 2023 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.

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

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

In 2023 (and in subsequent years), BEREC will continue calculating the WACC parameters, which it began doing in 2020. These parameters will be calculated at the beginning of each year and published in a separate report to allow NRAs to base their national WACC decisions on this up-to-date information. BEREC will also select the companies eligible for the peer group.

• Consult published document: BEREC Report on WACC parameter calculations according to the European Commission’s WACC Notice of 6th November 2019 (WACC parameters Report 2023)

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

Article 75(3) of Directive (EU) 2018/1972 of the European Parliament and of the Council establishing the European Electronic Communications Code – the 'EECC' – requires that NRAs report annually to the EC and BEREC about the application of that Article, in other words, on the implementation of Delegated Regulation (EU) 2021/654 setting a single maximum Union-wide mobile voice termination rate and a single maximum Union-wide fixed voice termination rate. In 2022, BEREC published the Report BoR (22) 73 on the monitoring of the termination rates for mobile and fixed voice calls proposing a template for NRAs to use to report on the implementation of the Delegated Regulation in their country. BEREC recommended that NRAs should provide their yearly reports under a common calendar and the reporting of information for each year should be concluded before 31 March of the following year.

Starting in 2023, BEREC will publish an annual report summarising the key findings. This report will summarise the information received from NRAs under their reporting obligations contained in Article 75 of the EECC. As an exception, the first report will include information covering the second half-year of 2021 and the whole of 2022. After that, year-on-year developments will be reported.

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.