Clarity concerning collaboration in relation to UMTS

This is a joint press release from NMa, OPTA and the Ministry of Transport, Public Works and Water Management, which are presenting a joint paper.

UMTS (Universal Mobile Telecommunications System) licence holders may collaborate with each other for the purposes of building parts of UMTS networks, provided that enough competition continues between them. When providing UMTS services, they must compete with each other to secure the favour of their customers.

NMa, OPTA and the Ministry of Transport, Public Works and Water Management have come to this conclusion. In a draft paper they have provided a detailed explanation of the opportunities for collaboration when building UMTS networks.

UMTS licence holders had asked NMa, OPTA and the Ministry of Transport, Public Works and Water Management to provide greater clarity about the possibility of collaborating with each other in the field of UMTS in relation to the Competition Act, their licensing terms and conditions and the Telecommunications Act in its present form. On 19 July 2001 NMa, OPTA and the Ministry of Transport, Public Works and Water Management issued a draft paper, to which various stakeholders responded. After studying these responses, this paper was finalised to provide the market and investors with clarity as sought.

NMa, OPTA and the Ministry of Transport, Public Works and Water Management are of the opinion that collaboration for the purposes of setting up UMTS networks may help to speed up the development of UMTS. Nevertheless, they are clearly stipulating the limitations of such competition, so as to ensure ongoing competition between UMTS licence holders. Such collaboration must remain confined to the joint establishment and use of a UMTS radio network (such as masts, antennas and network management facilities). In this respect every operator must be able to determine the quality of the network separately at his own discretion, so as to ensure that in practical terms there is no difference between it and a network that he has constructed entirely on his own. If these requirements are satisfied, it is still possible to refer to a network as one’s own.

The joint use of frequencies and core networks is not permitted. A core network is the core of a UMTS network. It contains databases and other items which are required for the provision of services, such as the administration of subscribers and interconnections. The joint use of such databases could go a long way towards allowing competitors to coordinate their activities and is therefore not allowed.

The paper also makes it clear which organisation is responsible for a specific form of regulation. For instance, NMa assesses all joint ventures which restrict competition. OPTA will ensure that every licence holder has its own network by 1 January 2007 in, amongst other places, all municipalities with more than 25,000 residents.

When NMa assesses a joint venture which has been established in concrete terms, the most important prerequisites are, for instance, that adequate competition should continue between UMTS licence holders with regard to both UMTS services and networks. The number and size of the organisations which participate in such a joint venture, as well as the extent to which they collaborate, are important factors for the purposes of this assessment. In addition, any information which is shared, must be confined to the technical details that are required.

UMTS licence holders may collaborate with each other for the purposes of building parts of UMTS networks, provided that enough competition continues between them.