Market and Economic Analysis

The Market and Economic Analysis Working Group (MEA WG) examines issues related to market reviews, such as market definition, assessment of market power and, more generally, market developments with significant impact on competition. Overall, the work aims to fulfil the Body of European Regulators for Electronic Communications’ (BEREC’s) goal of fostering independent, consistent and high-quality regulation of electronic communications networks and services for the benefit of European citizens.

In the past, MEA WG has worked closely with the European Commission in the development of key regulatory initiatives such as the Significant Market Power (SMP) guidelines and the Recommendation on relevant markets. In the same vein, the group will continue its close collaboration in the upcoming review of the regulatory framework and, consequently, the relevant markets Recommendation revision, by issuing an opinion.

MEA WG has also published Guidelines on co-investments (as provided by Art. 76(1) and Annex IV of the European Electronic Communications Code - the EECC) and, following 4 years after the adoption, assessed the need for their update. Additionally, the working group studied relevant aspects concerning the use of alternative, lighter remedies when compared to the traditional ones in the context of commitments made binding, including co-investments, as well as reflected on the wholesale-only treatment.

Finally, MEA WG reported on market analysis topics such as access to physical infrastructure, the effects of mergers and acquisitions, the analysis and regulation of oligopolies, geographical aspects of market definition and remedies, business services, the treatment of fixed and mobile backhaul or tower and access infrastructure companies.

Working Group Co-chairs

Iulia Zaim-Grigore

ANCOM, Romania

Jordi Canadell Boix

CNMC, Spain

Work in 2025

In 2025, the MEA WG will continue working on specific topics, based on the BEREC Work Programme 2025.

Report on the regulation of physical infrastructure access

Together with the Digital Decade targets and the expectations concerning the quick and efficient deployment of Gigabit networks by the electronic communications providers, physical infrastructure is gaining increasing relevance. Although the 2020 Recommendation on relevant markets susceptible to ex-ante regulation did not include a separate market for physical infrastructure access (PIA), the discussions on the various possibilities of regulating PIA are truly relevant nowadays, particularly where there is ubiquitous and suitable for alternative fibre networks deployment physical infrastructure in a Member State. Moreover, one can see a general trend of giving more weight to PIA. Several countries in Europe have already defined PIA standalone markets, such as France, Ireland, Portugal, and Latvia. At the same time, the White Paper reflecting on how to master Europe’s digital infrastructure needs puts forward the perspectives of close monitoring of the degree of infrastructure competition, potentially limiting ex-ante regulation to areas where it is still needed, one of the reasons underlying the partial deregulation of certain broadband markets being dependent on the upstream regulation of PIA.

Therefore, considering the fact that this topic is gaining momentum, BEREC plans to finalize, in 2025, the in-depth review of the PIA regulation applicable in Europe. The BEREC Report will explore the relationship between physical infrastructure access imposition in an asymmetric regime in relation/by reference to symmetric regulation. Depending on the results of the exercise, BEREC may conclude with some recommendations.

Fact finding report on the competition indicators and regulatory highlights in different jurisdictions

Developments in the markets of Europe provide a changing competitive landscape in terms of, on the one hand, the degree of concentration and competition in the different markets and investment in Very High Capacity Networks, and company ownership (covering the entry of investment firms as shareholders) or profits, on the other. BEREC considers it appropriate to look at key competitive indicators in various jurisdictions in order to put together a comprehensive collection of data to depict, from a quantitative perspective, the envisaged trends. Therefore, coverage, penetration of services, prices and corresponding operators’ returns and investments, partnerships and collaboration agreements (that could be well expanding beyond national borders) concluded between various providers, investment opportunities from financial players and so on are all aspects that BEREC could look at in its report. At the same time, from the consumers’ perspective, it could include, where possible, the evolution of the coverage (also of advanced technologies) and speeds they enjoy, as well as prices, quality, and usage of the services available, both in rural and urban areas.

BEREC may also include some thoughts from a forward-looking perspective. Such a report could shed light on the current state of telecom markets in the European Union. The report could also look at the structural links between the operators in the various jurisdictions to analyse whether they are part of bigger groups and the structure of the ownership, as well as relevant mergers and acquisitions that took place recently.

Workshops on the competitive effects of strategic fibre networks deployment, including in the context of copper switch-off

Fast and comprehensive fibre rollout is of utmost importance for the European economy and for reaching the 2030 Digital Decade Policy Programme targets. The current situation is uneven in Europe, with some countries already having high Fibre-to-the-Premises coverage and others being at different stages in the rollout process.

BEREC is interested to have an external workshop with the stakeholders and to explore topics such as:

BEREC is planning an internal workshop where to share experiences related to the topic of “overbuild” of fibre networks, treating issues such as:

BEREC Opinion on the review of European Commission's Recommendation on relevant markets susceptible to ex-ante regulation

According to Article 64 of the EECC, the European Commission (EC) shall review the Recommendation on Relevant Product and Service Markets regularly. The Recommendation shall identify those product and service markets within the electronic communications sector the characteristics of which may be to justify the imposition of regulatory obligations set out in the EECC.

BEREC will prepare an opinion based on the documents supporting the Recommendation’s review and its draft text proposal to be communicated by the EC. BEREC is committed to participating actively in the process and, given the importance of this Recommendation for market analyses, BEREC will participate in exchanges and workshops with the EC, as deemed necessary, to ensure that BEREC’s questions and concerns are clarified and addressed, as well as provide the EC with developments in National Regulatory Authorities’ knowledge regarding the functioning of the markets. At the same time, BEREC intends to engage with industry to inform its opinion, but the form and scope of such engagements will be determined later when BEREC’s task is clearer.

Why is this important?

The mission of MEA WG is to secure the regulatory scenery to alleviate potential competitive concerns related to topics under their remit. Quite generally, the group assists BEREC to fulfil its strategic priority of fostering full connectivity.