Interconnection (1) volver al principio

° All providers of public networks and services have the right and obligation to negotiate interconnection

° All providers with a significant market power (approx. 25%) shall meet all reasonable requests for interconnection

Interconnection (2) volver al principio

° Interconnection terms must be objective, transparent and non-discriminatory

° Interconnection agreements are available to the public

° All providers with a significant market power shall keep separate accounts of different services

Interconnection (3) volver al principio

Following is furthermore applied on providers of public networks and services which have significant power within the total (fixed and mobile) market

° Interconnections charges must be based on LRAIC (transition period until a date to be decided by the Minister for Research)

° NTA can require verification that charges are actually calculated in accordance with the legislation

° NTA can decide a decrease of the charges if verified that the charges of similar Danish or foreign agreements are lower

Interconnection (4) volver al principio

The National Telecom Agency

° shall supervise all interconnection agreements

° may be asked to act as mediator

° may be asked to decide on interconnection terms

° shall decide whether interconnection terms are infringing competition law (based on binding opinion of competition authority)

Interconnection (5) volver al principio

The Danish law on interconnection covers

° physical and logical interconnection of telecommunications networks (switched interconnection)

° lease of infrastructure capacity, including leased lines and other infrastructure capabilities

° service provision, including special network access

Interconnection – infrastructure (6) volver al principio

Lease of infrastructure capacity covers among others

° any leased lines

° raw copper (unbundled local loop)

° raw fibre cable (dark fibre)

Interconnection - raw copper (7) volver al principio

The scope of the regulation for the newcomers

° may have the full end-user relation

° may provide any service to the end-user, such as XDSL

° may offer combined/integrated services

without investing in raw copper

Interconnection - raw copper (8) volver al principio

The tariff for raw copper is calculated on the basis of historical costs - but only part of them

The NTA has calculated the costs to 661 DDK (170 DM) per year without VAT

According to the legislation, Tele Denmark is allowed a Profit of no less than 12 %. NTA suggested 12 Tele Denmark 26%. Politicians decided 12%.

Interconnection - raw copper (9) volver al principio

Annual rent of the unbundled local loop is 740 DKK without VAT

The average telephone subscription in Denmark is 1027 DKK per year without VAT

Insufficient rebalancing of the subscription fee could hamper the benefit of unbundled local loop

Interconnection - service provision (10) volver al principio

The Danish interconnection law covers

° service provision on fixed networks
° service provision on mobile networks

Interconnection - service provision (11) volver al principio

The scope of the regulation for the newcomers

° may have the full end-user relation
° may offer combined/integrated services

without investing in networks

Interconnection - service provision (12) volver al principio

The tariffs for service provision is based on the avoided cost model

This means end-user tariffs minus 21%, but only in cases where the NTA has decided that it is important for competition reasons

Source: NRAs and Commission (version of March 1999)