State aid - Basic test for new wholesale access requests on part-state funded networks
Guidance for local bodies in respect to local broadband projects. Basic test for new wholesale access requests on part-state funded networks.
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When assessing requests for new wholesale access products under the regulatory (Significant Market Power (SMP)) framework three basic criteria are considered. Although the detailed application may change in light of the public subsidy, these three basic criteria can also be applied when assessing requests for new wholesale access products on part-state funded broadband networks (with Ofcom potentially acting as the arbitrator if needed).
The three basic criteria are:
- Costs – all reasonable costs of providing the a new wholesale access products should be met by the access seeker(s);
- Competition – the introduction of the new wholesale access products should deliver sustainable and effective competition in the downstream market(s); and
- Purpose – the new wholesale access products should clearly address the market problem that lead to the original intervention/obligation.
Discussed in this document is how these tests could be used to assess “reasonable demand” for new wholesale access products for subsidised superfast broadband infrastructure.