Layer 2 wholesale access products excluding Ethernet-based leased lines on Market 4

In recent years, several NRAs imposed Layer 2 wholesale access products (L2 WAP) on SMP operators. BEREC already analysed L2 WAPs imposed as a remedy on the wholesale local access market (Market 3a) and on the wholesale central access market (Market 3b) and published a report on common characteristics of L2 WAPs (BoR (15) 133) and a common position on L2 WAPs (BoR (16) 162). In addition to Markets 3a and 3b, L2 WAPs have also been imposed on the wholesale high-quality access market (Market 4) in some countries. According to the EC’s Recommendation on relevant product markets of 2014, Market 4 may not only include leased lines (with traditional and/or alternative interfaces, namely Ethernet) but also other high-quality access products, if they fulfil certain criteria. Indeed, several NRAs included in Market 4 other high-quality access products than leased lines, in particular advanced bitstream products and imposed such products as a remedy on the SMP operator. In order to get a deeper insight into these products and to contribute to a consistent regulation of access products as well as to foster the knowledge transfer between NRAs, the report analyses L2 WAPs imposed on Market 4 with a focus on advanced bitstream products (not including Ethernet-based leased lines).

The objectives are:

•  to provide an overview of L2 WAPs currently in place on Markets 3a, 3b and 4;
•  to analyse the reasons why such products have been imposed on Market 4;
•  to examine on Market 4 to what extent L2 WAPs in different countries have characteristics in common and to identify these common characteristics; andto analyse the main differences between L2 WAPs imposed on Market 4 and L2 WAPs imposed on Markets 3a and 3b.

The analysis is descriptive and does not aim to be normative or to recommend best practices.