An assessment of the NPT’s proposed regulation of broadband markets in Norway

This report provides an independent assessment of the Norwegian Post and Telecommunication Authority (NPT) draft decision on how to regulate the broadband market in Norway over the next three years. In the assessment Plum set out where the NPT’s decision is likely to be against the public interest and/or inconsistent with European Commission guidance.

Plum argued that the NPT:

  • Is inconsistent in the way it defines broadband product markets – sometimes it considers retail markets and sometimes wholesale markets.
  • Does not recognise the need to provide regulatory certainty so as to maximise incentives to invest in fibre access networks
  • Does not consider the economic arguments againt unbundled fibre loops
  • Should assess the state of competition in the Norwegian market by geographic area, rather than nationally, and consider defining geographic submarkets

Plum also argued that the NPT’s proposal to lower the regulated price of copper loops is inconsistent with both the European Commission’s guidance (this recommends setting copper loop prices based on LRICs calculated on a replacement basis) and the Norwegian Government’s policy objective of encouraging migration to high speed broadband.