English

Policy Documentation Center

Analysis of telecommunications services availability 
 
 
 
The Office of Telecommunications and Post Regulation (URTiP) has conducted an 
analysis of telecommunications services availability, in particular investigating the 
possibility to increase availability of telecommunications services not only such as the 
telephony but also data transmission with a special emphasis on economically 
underdeveloped areas. The analysis was conducted within the work group for 
telecommunications services availability which was formed by the President of the 
URTiP in communication with the Minister of Infrastructure. 
 
The management of the Ministry of Infrastructure expressed favourable opinion on 
the report summarising the first stage of the group proceedings. 
 
Taking into account the conducted analysis of current situation, the following 
conclusions have been drawn: 
 
 
1. It is necessary to strive for implementation of regulatory policy consistent with a 
corresponding policy pursued by the countries of the European Union. This policy 
should in particular include: 
 
• issuing ordinances of the Council of Ministers and Minister of Infrastructure listed 
in the act amending the Telecommunications Law. The ordinances should 
facilitate interventionist actions by the President of the URTiP on the 
telecommunications market in the scope of decisions that stimulate 
demonopolization and liberalization.  
• undertaking consistent activities that lead to unbundling the local loop. Experience 
of the European Union countries so far does not point to significant and quick 
developments, however activities in this respect should not be neglected, in 
particular in the area of unbundling the local loop for access to the Internet.  
• supporting activities in the area of number portability. Similarly to local loop 
unbundling, number portability can have positive influence on the development of 
competition on the telecommunications market. 
 
 
2. Accelerating the strategy for the telecommunications market liberalization. The 
development of new technologies and new services possible to be introduced in 
different networks by different operators should lead to the elimination of historic and 
formal barriers to large scale operations on the information technology market. 
Certain activities have been already implemented. Nevertheless, extending the list of 
services by all market players should be encouraged. It is possible to enumerate here: 
 
• the provision of telephone and Internet services by cable and satellite television 
operators.  
• the provision of services in fixed networks at all levels, i.e. local, long distance 
and international by those operators who are interested in it. Extending these 
possibilities should positively affect financial situation of particular operators.  
• application of new technologies for subscriber access. Taking account of existing 
technical conditions, access in such technologies as: radio WLL, VoIP, PLC, 
WLAN should be enabled. 
• encouraging convergence of fixed and mobile services, maintaining equal level of 
competition. This policy can contribute to gradual reduction of differences 
between tariffs in fixed and mobile networks. 
 
 
3. Encouraging new investments in the area of telecommunications services 
availability (telephone and data transmission services) in particular in economically 
underdeveloped areas. Activities mentioned in points 1 and 2 have been carried out to 
a certain extent, however the availability of telecommunications services particularly 
in the areas with insufficient telecommunications infrastructure is still unsatisfactory. 
If the level of fixed penetration in the Czech Republic is assumed as a point of 
reference, it turns out that Poland lacks at least 3 million fixed telephone lines. 
 
The investors are barely interested in the Polish fixed market. Legal instruments of 
telecommunications market regulation do not guarantee fast changes and the market 
itself is too weak to generate them. Efficient regulation that could lead to measurable 
market developments is impossible without the investors’ interest in the Polish 
telecommunications market. 
 
The President of the URTiP intends to take the following measures in order to 
stimulate new capital’s interest in the Polish telecommunications market: 
 
• making use of new possibilities offered by an amended in 2003 National Table of 
Frequency Allocation and new technologies applied in radio subscriber access 
systems. At this stage of technology development radio access systems enable fast 
deployment of network infrastructure, and what follows fast introduction of 
services. The deployment of WLL network is faster and cheaper than the 
deployment of wire subscriber access – the pace of deployment and costs of the 
WLL systems can be compared with the mobile networks.  
• encouraging development of Internet access systems via power lines (maintaining 
compatibility with the existing radiocommunications and broadcasting networks).  
• regular invitations (e.g. twice a year) to submit applications for wide coverage 
telecommunications authorisations in the area of network deployment based on 
radio access. The assessment of submitted applications should focus not only on 
technical viability with respect to frequency allocation, but primarily on:  
 
o guarantees of financing that enables network deployment covering vast 
areas of the country with particular emphasis on economically 
underdeveloped areas.  
o offering technical solutions for integrated services – the telephony as 
well as fast data transmission services  
o application of modern technologies that proved successful all over the 
world and are commonly applied (economies of scale); this condition 
will ensure relatively low prices for equipment, terminals and the 
guarantee of long-term maintenance.   
o the market power of an operator taking account of market 
demonopolization and openness to healthy competition. The initiative 
to provide frequencies for new radio access systems should take into 
consideration social needs for telecommunications and information 
technology within areas with insufficient telecommunications 
infrastructure. The result should be greater accessibility to the services 
mentioned and their price availability. 
 
This can be achieved by building real competition. Decisions on reservations must 
take account of the threat to ‘freeze’ allocated frequencies or to strengthen the 
monopoly of operators active on the telecommunications market. This initiative can 
be attractive not only to new investors (especially in the light of accession to the 
European Union), but can also contribute to: 
 
• increasing competitiveness on the fixed market. An important part of the policy 
towards new WLL operators is to ensure that the services they offer are not only 
modern, but that the service offer comes at prices comparable with fixed services. 
As the analysis of prices for fixed and mobile services shows, there is a significant 
difference and despite quite intense marketing activities of mobile operators this 
relation is not expected to change significantly in the near future. This refers both 
to basic telephone services and access to the Internet. New WLL operators should 
not charge mobile tariffs, but fixed tariffs.  
• encouraging consolidation of fixed market. Perhaps the so called ‘independent’ 
fixed operators with operational structures will be able to take part in new 
investments.  
• increasing mobile operators’ interest in cooperation with new WLL operators. 
Mobile operators have a well developed radio access infrastructure; several 
thousand base stations (permanent locations, masts, power supply, security), 
transmission platforms from base stations up the network. However, it should be 
pointed out that the relationship between new WLL operators and mobile 
operators should be limited to cooperation of independent entities in using radio 
access infrastructure. Neither a mobile operator nor its subordinated or financially 
linked entity should at the same time be an operator of WLL systems because, as 
in the case of fixed SMP operators there is a risk of distortions of competition on 
the telecommunications market. 
 


Analysis of telecommunications services availability

Abstract

Similar works

Full text

Available Versions

Policy Documentation Center