TELECOMMUNICATIONS

On 21 December 2010, the four Belgian telecommunications regulators each published a draft decision (the "Draft Decisions") which aims at opening up the Belgian market for television and internet distribution. At the same time, the Belgian Institute for Postal services and Telecommunications (Belgisch Instituut voor postdiensten en telecommunicatie/Institut belge des services postaux et des télécommunications – the "BIPT") published its analysis of the markets for network and broadband access. Together, the Draft Decisions and BIPT's market analysis aim to tackle competition problems arising in the market for triple-play bundles of internet, telephony and television.

The Draft Decisions result from the joint efforts of the BIPT and the regional regulators, i.e., CSA (Conseil supérieur de l'audiovisuel), Medienrat and VRM (Vlaamse regulator voor de media). Since January 2010, these regulators have been cooperating intensively on an analysis of the market for television broadcasting market. The Draft Decisions aspire to create a framework in which operators and providers of telecommunications services can compete on even terms. This will in turn offer consumers a larger choice of internet access and television broadcasting services.

The cable operators targeted by the Draft Decisions are Telenet, AIESH (solely with respect to the resale of its analogue TV offer), Brutélé, Numéricable and Tecteo. These operators are required to offer alternative operators (i) access to their digital TV platform; (ii) to an offer for the resale or their analogue TV offer; and (iii) to an offer for the resale of their internet access.

Pursuant to BIPT's analysis of the markets for network and broadband access, Belgacom will continue to be subject to obligations to offer unbundled access to all its local access network and broadband access to third parties. In addition, Belgacom will be required to offer other operators access to its 'multicast' network functionality so as to grant alternative operators the opportunity to offer broadband-based TV services (IPTV) bundled with broadband and voice services.

Interested parties have until 18 February 2011 to submit their views on the Draft Decisions and BIPT's market analysis. All decisions will be finalised in the summer of 2011 following which the operators will be granted sufficient time to prepare their offers. According to Luc Hindryckx, president of the BIPT, the changes should be operational within one year.

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