Monthly Monitoring report - Czech Telecommunication Office
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Monthly Monitoring Report September 2014 Newsflash on telecommunications Content From the decision-making CTU´s Council is complete again practice................................. 2 Ondřej Filip, who decided to leave the CTU´s Council at the end of August, was re- placed by Jan Duben. So far, Mr. Duben served as director of the Department of digi- Situation on the electronic tal economy and protection of consumer at the Ministry of Industry and Trade. The communication market...... 2-4 Government appointed him in the position of the Member of the Council until 2019. Virtual operators................. 4 European Commission relaxes the regulation of fixed lines On October 9, the European Commission promulgated the Amendment Market analysis.................... 5 of Recommendation in which it newly defines only four relevant markets instead of previous seven. The Commission has canceled existing markets Regulation of telecommunicati- no. 1 and 2 of the Recommendation. Fixed and mobile connections to the on in the EU. . ......................... 5 internet remain under the control of regulator. The Office will prepare new The CTU checked in September.6 -7 methodology to the Measure of General nature on the basis of amended Recommendation, which will determine the list of relevant markets. CTU on the side of consumer.7 House of Deputies endorsed the Act on Electronic Communications in the first reading Univerzal service.. ............. 7 The limit of the amount of contractual fine on early termination of contract, concluded for an indefinite period of time, will now only THEME OF THE MONTH: Discus- concern consumers. According to existing legal regulations, operators sion document on implementation shall not charge any subscriber for early withdrawal more than one of Universal service........................8-14 fifth of the sum of remaining monthly flat fees or contracted minimum of monthly payment. Amendment is now heading to the Senate. Czech consumer will remain protected as elsewhere in Europe On Friday, September 26, the er about this change and customer has of contract leading to deterioration of House of Deputies endorsed the the right to withdraw from the contract. position of subscriber.“ However, Union Amendment of the Act on Electronic It is, however, general principle, which legislation does not admit any such ad- Communications which substantially does not concern telecommunications ditional condition. restricts rights of consumers of tel- The Amendment will be dis- ecommunication operators. How- cussed in the Senate. The CTU, ever, already during the debate on On the basis of proposed changes of contractual con- as the authority applying the Act the Amendment the CTU pointed ditions participants have the right to repeal contract on Electronic communications out that the proposed modifica- without any sanction. Not later than one month before expects that the Upper Chamber tion are in conflict with European such a change participants must be informed in cor- will put the Amendment in har- Directive on Universal service. responding form and, simultaneously, they must be in- mony with the Union´s Directive Compared with the wording formed about their right to cancel such a contract with- so that the Czech Republic will of the Directive national modifica- out any sanction if they do not accept new conditions. be protected against the risk of tion approved by the House limits Article. 20 Para. 4 of the Directive 2002/22/EC the process of infringement rights of consumer to react to the When deciding disputes the situation when telecommunication CTU will continue to respect the operator unilaterally changes the con- only as it is anchored also in § 1752 of right based on the Directive which tract. Currently, the operator has four the Civil Act, for example. has, as harmonizing instrument of obligations towards a customer in this There is a new provison in the con- the European Commission, greater le- case (broken down on page 2 in Article tract according to which contract may gal power than the Act which would Change of contract allows subscriber to be terminated without any sanction un- implement it incorrectly and which leave), inter alia, it must inform custom- der condition that „it is essential change would not comply with it.
§ From the decision-making practice of the CTU: Contractual fine must be a part of consumer contract and must be definite Arrangements forming contractual fine cannot be a part of the so- itself (document on which consumer at- called general commercial conditions but must exclusively be a part taches his or her signature)…“. of consumer contract itself under which a client attaches his signa- Decision further states that provisions ture. Moreover, this arrangement must precisely specify which obli- on contractual fine, which became an in- gation consumer must violate that supplier may seek fine. This fol- tegral part of contractual arrangement lows from final decision promulgated by the CTU in September in the between petitioner and respondent, does dispute of one of clients of the company DIGI Czech Republic. not specify which obligation subscriber The company Company DIGI Czech lid. Given the finding of the Constitutional must violate in order to seek contrac- Republic demanded the payment of con- Court of the Czech Republic sp.zn. I ÚS tual fine. Formulation contained in the tractual fine from its customer. It based 3512/11 it stated that „…commercial con- contract („If User violates any obligation its claim on contractual relation resulting ditions shall not serve contractor to hide, determined by the Contract, including from the contract dated October 2006. in frequently confusing, intricately formu- violation without any fault on the side of Respondent refused to pay contractual lated and in small print written form, the User (…), the company DCZ is entitled to fine because the service was not working arrangements which are disadvantageous demand from user payment of contractual and yet he paid proportional part of it. for consumer and about which it assumes fine at the amount of 5000 CZK for each While the body of first instance admit- that they will rather escape attention of individual violation of obligations…“) can, ted the claim of contractual fine of petition- consumer (…). Within the framework of therefore, be considered as indefinite and er, the Chairman of the Council of the CTU. consumer contracts arrangements found- invalid according to § 37 of the Civil Code. In its decision on the appeal it deduced ing contractual fine cannot be principally For the above reasons the Chairman of that the arrangement of contractual fine in part of the so-called general commercial the Council of the CTU denied petitioner the wording of submitted contract is inva- conditions, but only of consumer contract a claim for the payment of contractual fine. Change of contract is the basis for the right of subscriber to leave The Right of operator to change unilaterally a contract is counterbalanced If the operator unilaterally changes the in the Act on Electronic Communications (ZEK) by Measures which, in such contract, in addition to the immediate im- a case should protect customer as a weaker contractual party. Subscriber cannot namely intervene significantly in the draft of subscriber contract and pact on the price of services provided, with- the Act does not grant him/her the right to change contract unilaterally. out allowing to its consumers, as a weaker In provisions of § 63 Para. 6 of Act on using method which subscriber has chosen contractual side, not to accept this newly Electronic Communications we can find for sending bills and stipulated price and to employ the option four obligations of operators: 4. to inform subscriber about the change 1. to publish information concerning the of essential requirements of the contract to choose another provider of services, change of contract in each of its establishments, or change of other provisions leading to this can be understood as an obvious at- 2. to publish information concerning the deterioration of position of subscriber with change of contract in the Internet, instruction that he/she is entitled to termi- tack against above described social interest 9 / 2014 3. to inform subscriber about this change nate the contract without sanction. which cannot enjoy protection of the Act. connection Fixed line, ISDN2, ISDN30 Situation on the electronic communication market and SIP1. Package VoIP Komfort offers for to non-public telephone networks with- 871.20 CZK/monthly 1,000 free minutes out limitation of volume of free calls. of calls to mobile networks in the Czech Starting from 1st September the Republic and calls to international desti- Starting from September the com- nations, for example for calls to majority package of free minutes in mobile net- pany O2 reduced in tariffs VoIP O2 Busi- of EU countries, USA and Canada. The works cannot be activated on VoIP Lines, ness and VoIP O2 Trend, designated for unused portion of free minutes is not which, for 1,815 CZK/monthly, contained transferred in the following billing period. VoIP lines, basic prices of the service VoIP 3,000 free minutes of calls to mobile net- Number of purchased packages must Line – unlimited national call by 145.20 CZK/monthly (from 363 CZK/monthly to works in the Czech Republic. Supplemen- 1 Supplementary service VoIP line SIP single tary package (Package of free minutes to (independent connection with SIP protocol), 217.80 CZK/monthly). Basic price of the VoIP line SIP series (two or more SIP connecti- service includes local and remote calls in mobile networks on VoIP Lines) was re- on associated by supplementary service series line), VoIP line SIP DDI (two or more connec- peak hours and off-peak hours to fixed placed by package VoIP Komfort, which tions with SIP protocol associated by supple- networks in the Czech Republic and calls is designed for VoIP lines of the type mentary service DDI). Monthly monitoring report -2- September 2014
correspond to the number of voice the nearest data limit. O2 further prolon- iff Red all-in) prices increased in the channels of a given type of connection. gated marketing event „Higher tariff for variant without commitment to 1248.75 Free minutes can be applied for calls the price of lower one“ for the service O2 CZK/month (original price was 1100,00 within the framework of O2 Team Com- Mobile internet connection. CZK/month). In the tariff Red LTE Premi- bi2. Calls beyond free minuts are -charged um (formerly tariff Red Premium) prices according to tariff used by customer. were increased in the variant without Starting from 1st September O2 Společnost Vodafone od 13. září up- commitment to 1873.75 CZK/month adjusted conditions for automatic calls ravilStarting from 13th September the (original price was 1665.56 CZK/month). from fixed networks. As a connection Company Vodafone modified offer of flat Vodafone further offers the service Data from fixed network to mobile network tariffs. Customer can have available tariffs beyond package. After exhausting of the O2 is considered, besides calls to mobile Smart 50, Smart 100, Smart 250, Red LTE, basic volume of data data limit will be auto- numbers to O2 mobile voice service, Red LTE Plus and Red LTE Premium. In case matically increased depending on the type also calls to numbers of virtual operators of the tariff Smart 50 customer will receive of voice tariff. In case of crossing of volume of BLESKmobil, Gorila mobil and Bonerix. 50 free minutes to all networks within the data of tariffs Vodafone "First step for a child In September O2 changed its offer framework of the Czech Republic and un- free of charge" and Vodafone "First step" data of fixed subscriber connection to the In- lilimited SMS in its own network within the limit will be automatically increased by an- ternet network. Existing tariff programs framework of the Czech Republic. Price of other 20 MB for 20 CZK. In case of crossing with obligation and automatic prolonga- calls beyond free minut is 3.49 CZK/minute of volume of data of tariffs "Red to network tion (Internet Start+, Internet Optimal+, (tariffication 1+1), price of SMS is 1.51 CZK/ for partner", Fair tariff 3993 , Smart 50, Smart Internet Aktiv+) are not offered any more SMS. Part of voice tariff is also the so-called 100 and Smart 250 data limit will be auto- actively because they were replaced by data package LTE with data limit of 50 MB. matically increased by another 50 MB for 49 services designated as Internet Start Plus, Price of the tariff is 249 CZK/month in the CZK. In case of crossing of volume of data of Internet Optimal Plus and Internet Aktiv variant with commitment for 24 months tariffs Fair tariff 14994, Red LTE, Red LTE Plus Plus. Besides adjustment of prices these and 311.25 CZK/month in the variant with- and Red LTE Premium data limit will be auto- new tariff programs with obligation and out commitment. In case of the tariff Smart matically increased by another 250 MB for 49 automatic prolongation after 12 months 100 customer will receive 100 free minutes CZK. Service "Data beyond the framework of in all speed variants are replenished for to all networks within the framework of package" also applies to mobile connection customers (natural persons) by free dis- the Czech Republic and unlimited SMS in to the Internet.5 In case of crossing of volume tribution of digital television O2TV. Basic its own network within the framework of of data data limit will be automatically in- configuration of tariff programs includes the Czech Republic. Price of call beyond creased by another 250 MB for 49 CZK. supplementary service O2TV Start offer- the framework of free minutes is 3.49 CZK/ Vodafone also offers to its consumers ing reception of 21 free television chan- minute (tariffication 1+1), price of SMS is the opportunity to buy additional volume of nels. The service Internet Start Plus can 1.51 CZK/SMS. Part of voice tariff is also the data services. n case of voice tariffs Smart 50, one have now for 349 CZK/monthly, In- data package of LTE with data limit of 100 Smart 100, Smart 250, "Red in the network ternet Optimal Plus for 499 CZK/month- MB. Price of the tariff is 349 CZK/month in for partner", Fair tariff 399, Vodafone "First ly and Internet Aktiv Plus for 599 CZK/ the variant with commitment for 24 months step for a child free of charge" and Vodafone monthly. Prices and other conditions in and 436.25 CZK/month in the variant with- "First step" have a sufficient volume of data tariffs without obligations (Internet Start, out commitment. In case of tariff Smart 250 with the data limit of 250 MB for 99 CZK/ Internet Optimal, Internet Aktiv) remain customer will receive 250 free minutes to all month. In case of voice tariffs Fair tarif 1499, in force unchanged, with the exception networks within the framework of the Red LTE, Red LTE Plus, Red LTE Premium and of replenishment of free distribution of Czech Republic and unlimited SMS to all 9 / 2014 in case of data tariff Mobile connection 500 digital television O2TV Start. networks within the framework of the MB, Mobile connection 1.5 GB, Mobile con- O2 prolongated until the end of the Czech Republic. Price of call beyond the nection 4 GB and Mobile connection 10 GB year validity of marketing event „Internet framework of free minutes is 3.49 CZK/min- it is sufficient volume of data with data limit in mobile“ with higher data limit for a price ute (tariffication 1+1). Part of voice tariff is of 1 GB for 99 CZK/month. of lower data limit. The offer is earmarked also data package LTE with data limit of 250 Starting from 1st September the Voda- for subscribers of tariffs FREE who have MB. Price of the tariff is 549 CZK/month in fone came with the offer of unlimited calls simultaneously, within the framework of the variant with commitment for 24 months (continue on page 4) their tariffs, contracted Internet in mobile and 686.25 CZK/month in the variant with- 3 This tariff is bound to special offer „Tariff with minimum data limit of 200 MB. Each out commitment. for student“ – 25% discharge from monthly subscriber, who will increase his data limit, In tariff Red LTE (formerly tariff Red) price (399 CZK /month) for the period of 12 month. will pay, for the period of two months from prices increased to 749 CZK/month in the 4 This tariff is bound to special offer „Tariff the day of increase of data limit, monthly variant with commitment for 24 months for student“ – 67% discharge from monthly flat price corresponding to the tariff with (original price was 699 CZK/month), in price (1,499 Kč/month) for the period of 12 2 Service O2 Team Combi allows customers the variant without commitment cus- month. of O2 to create voice VPN employing existing tomer will pay 936.25 CZK/month (origi- 5 Specifically there are data tariffs Mobile telephone connections (situated in fixed ne- connection 500 MB, Mobile connection 1,5 GB, twork of O2) and mobile stations active in O2 nal price was 873.7 CZK/month). In case Mobile connection 4 GB and Mobile connec- network . of the tariff Red LTE Plus (formerly tar- tion 10 GB. Monthly monitoring report -3- September 2014
(continue from page 3) calls is charged with the amount of 3.50 CZK/ Free minutes of tariffs Telefon 100 Business, in its own network within the framework of minute (tariffication 60+1). Price of SMS is Telefon 150 Business and Telefon 250 Busi- the Czech Republic for the period of 30 days 1.90 CZK/SMS.. ness can be newly applied in international earmarked for pre-paid Card for student. calls, for example to neighbouring countries, Customer, who will buy pre-paid Card for Italy, France, Great Britain, USA etc. Tariff Tele- 200 CZK, will get advantage in the form of fon Unlimited Business includes newly 1,000 unlimited calls in the network of Vodafone free minutes of calls to international zone 0 for the period of 30 days. After the expiry of Starting from September 2014 the com- beyond free minues earmarked for calls to the deadline of 30 days customer may call to pany UPC extended the opportunity of ap- public fixed and mobilech networks in the four selected numbers in the network Voda- plication of free minutes of call of tariffs ear- Czech Republic (except calls to lines begin- fone for 1.90 CZK/minute, price of other marked for business men and entrepreneurs. ning with 8XY and 9XY). C hanges in the market of mobile virtual operators Šlágr mobil It started its activities on 1st Sep- tember 2014 On 1st September virtual operator Šlágr mobil entered the market of mobile company: BEI MULTIMEDIA INTER- services offering in total three basic flat tariffs "Šlágr Volání", "Super Šlágr ACTIVE s.r.o. CALL" and "Zlaté Šlágr CALL". network operator: T-Mobile Czech Republic a.s. Virtual operator Mobil from ČEZ came for the month of September with the spe- Mobil od ČEZ cial offer of discount at the amount of 25 % in voice packages "Volám občas" and special offer of voice tariffs "Volám rád". After activation of relevant package during validity of special offer, company: ČEZ Prodej, s.r.o. consumer will be charged (during five months) voice package "Volám občas" for network operator: O2 Czech Re- the price of 150 CZK/month (standard price of 200 CZK/month) ad Voice package public a.s.. "Volám rád" for the price of 255 CZK/month (standard price 340 CZK/month). Nej MOBIL On 1st September virtual operator Nej MOBIL included in the offer of mo- new tariff bile services new tariff "Nej v Síti", which allows unlimited calls and sending company: Nej TV a.s. of SMS for the price of 199 CZK/month in the „network“ NEJ CZ. Operator network operator: T-Mobile Czech Republic further cancelled the offer of additional data package of internet in mobile a.s. "Nej Komfort" with data limit of 1,500 MB and the price of 409 CZK/month. NETBOX Mobil Starting from 1st September virtual operator NETBOX Mobil offers its new new date packages additional data package of the internet in mobile with capacity of 600 MB 9 / 2014 company: SMART Comp. a. s. and 1,200 MB. Operator further reduced the price of existing additional network operator: T-Mobile Czech data package of the internet in mobile with data limit of 300 MB from origi- Republic a.s. nal price of 200 CZK/month to the level of 130 CZK/month. Starting from 3rd September virtual operator LAMA mobile offers new package of LAMA mobile 50 SMS with price of 50 CZK/month*. In month of September 2014 operator also nový price-list modified the offer of wthe tarif "CHYTRÁ LAMA" in the variant with the price of 249 company: LAMA MOBILE a.s. CZK/month, which newly contains 150 free minutes and 50 free SMS to all networks network operator: Vodafone in the Czech Republic and data limit at the level of 150 MB. Operator ceased to offer Czech Republic a.s the tariff "CHYTRÁ LAMA" in the price variant of 399 CZK/month. opencall Starting from 18th September virtual operator opencall reduced prices of data pack- new price-list ages with limits of 150 MB, 300 MB, 500 MB and 1,000 MB. Operator also reduced company: DH Telecom a.s. price for call and sent SMS within the framework of its own „network“ to the level of network operator: Vodafone 1 CZK/minute, and/or 1 CZK/SMS. Czech Republic a.s. * Validity of SMS packages coincides with billing period which starts on the 3rd day in a month and terminates on the 2nd day of the following month. Monthly monitoring report -4- September 2014
Regulation of telecommunication in the EU Market analysis On 1st September Vice-President of introduced on 10th September new Eu- Market no. 4 – wholesale the European Commission Ms Nellie ropean Commission proposed. (physical) access to the in- Kroes announced three events from • frastructure of the network the field of radio spectrum – infor- On 25th and 26th September 20th (including shared or full un- mation on the report of former Eu- Plenary session of the Association of reg- bundling of subscriber line) ropean Commissioner for commerce ulators BEREC was held in Rome within the framework of which Working plan of in fixed location and market Pascal Lamy which includes Recom- no. 5 – wholesale broadband BEREC for 2015 and Strategy BEREC for mendation concerning utilisation of access in networks of elec- years 2015 – 2017 were discussed. Euro- the UHF band and concerning in- tronic communications pean regulators agreed that they pre- ventory of radio spectrum. pare common standpoint to the current The third event was publication of Im- During September the CTU be- proposal for the regulation concerning plementing decision of the Commission gan notification process on draft unified telecommunication market, ap- no. 2014/641/EU from 1st September analysis of relevant markets no. 4 proved report on regulatory account- 2014 on Harmonized technical condi- ing practice for 2014, report on the data and no. 5. The European Commis- tions of utilisation of radio spectrum by collection for international roaming for sion accepted both proposals on Q4 2013 – Q1 2014, report on monitoring 10th October. wireless sound devices to ensure news programs and organizing public social of quality of service of connection to the Market no. 6 – wholesale events (PMSE) in the Union. The Czech Internet in the context of network neu- trality, and complied with the request of end segments of leased cir- telecommunication Office received a ma- cuits regardless of technol- Albanian regulator concerning granted jor responsibility for this regulation of the ogy employed to ensure observer status in BEREC sessions. European Union, Ministry of Industry and leased or reserved capacity • Trade enlisted itself as coordinator. Mem- On 16th October 2014 top representa- ber States will inform the Commission The Council of the CTU discussed tives of BEREC will introduce medium-term about discharge of this decision not later draft analyses of relevant market no. strategy of BEREC and Working plan for than nine months after it becomes effec- 6, supplemented by findings of public 2015 within the framework of „2nd BEREC consultation. On 4th September the Of- tive on publication in the Official Journal Stakeholder Forum Meeting“. After subse- quent discussion with all interested parties fice forwarded the draft to the Office for of the European Union. both documents will be finalized so that protection of economic competition for • they can be endorsed on December BEREC its standpoint. Newly elected President of the Euro- pean Commission Jean-Claude Juncker meeting. The auctions of frequencies Information from working groups of CEPT ECC Within the framework of preparation for the auction of radio frequencies in The project team CEPT/ECC/PT1 focused on the issues of mobile communication bands of 1,800 MHz and 2,600 MHz the 9 / 2014 (IMT) on its 47th meeting in Zagreb dealt with comments from public consultation CTU published on its Internet pages to the proposal of Report ECC no. 53, processed on the basis of the mandate of the Results of public consultation includ- European Commission. Public consultation confirmed proposal of future harmonized ing settlement of comments received channel arrangement of 700 MHz band, compatible with channel arrangement in to draft conditions of the auction. Asia-Pacific and American regions. Report will be submitted to November meeting On its Internet pages the CTU of the ECC for adoption. published also communication to Meeting of the working group CEPT/ECC/CPG ensuring preparation of European the standpoint concerning com- countries for the World´s radiocommunication conference ITU (WRC-15) was held on ments of subjects to Basic princi- 23rd – 26th September in Marseille. The Meeting discussed and endorsed updated ples of tender procedure relating to wording of CEPT reports and Common European proposals (ECP) concerning individ- frequency band 3,600–3,800 MHz. ual agenda items of WRC-15. For future meetings it will remain to discuss, in particular, Next steps in preparation of both the issues of protection of development of the service in the band under 694 MHz, tender procedures depend on the suitable particularly for pilotless instruments, automotive applications in the band of process of discussing amendments of 75 GHz and particularly compliance with proposals of identification of another bands Government Regulation no. 154/2005 for IMT. As a fundamental change can be considered shift of bands 1,350 – 1,375 MHz, Coll., on Determination of the amount 1,375 – 1,400 MHz, the band 2,700 – 2,900 MHz and the band of 5,350 – 5,470 MHz in and method of calculation of charges the category of unsupported bands for identification of IMT. for the use of radio frequencies and numbers, as later amended. Monthly monitoring report -5- September 2014
The CTU checked in September … ...test operation of base stations LTE of September the CTU performed physi- …performance of communication ac- in the band 800 MHz – on 30th Septem- cal inspection of portability of telephone tivities without authorization – the Of- ber 936 base stations were in test opera- numbers of fourteen selected virtual fice discovered four cases of performance tion LTE in the band 800 MHz, in perma- mobile operators. Currently evaluation of communication activities without au- nent operation 520 BTS. At the beginning of results of inspection takes place and in thorisation and will open legal procedure in of September, following the information justified cases acts preceding beginning these cases. in the media, rose sharply the number of of legal procedure will be performed. …observance of conditions of indi- reports received, however, only in each fif- Collaboration of the CTU with Česká ob- vidual authorisation for the employ- teenth case it was a legitimate case of jam- chodní inspekce – When checking wireless ment of radio frequencies – CTU per- ming. In September the CTU received 600 doorbells in Bystřice nad Perštejnem within formed two inspections of observance of reports of jamming of television, what the framework of regular inspection of tel- conditions of individual authorisation for represents ten times the normal monthly ecommunication of end and radio devices the employment of radio frequencies, and number. There are 140 reports more than controllers discovered no shortcomings. In subsequently it issued two calls to eliminate during the whole year 2013. 40 BTS were other inspections of sellers in Jablonec, Varns- shortcomings and began legal procedure determined as jamming devices in Sep- dorf and Železný Brod sale of radio controlled in these cases. tember what, in relation to the number of models of cars working in the bands of 31 …observance of conditions of General all BTS operated in test and permanent op- MHz, 32 MHz, 45 MHz, 49 MHz and 81 MH was authorisation no. VO-R/12/09.2010- eration, represents 2.75 authorized reports discovered. Those radio equipment cannot 12 for the employment of radio fre- in 100 BTS , since launching of test opera- be operated in the Czech Republic without tion it is 73 BTS LTE in the band 800 MHz individual authorisation for employment of ra- quencies and operation of devices for in total. The ratio of eligible cases of jam- dio frequencies. Shortcomings discovered will broadband transmission of data in ming to the numbers of received reports be resolved by the ČOI within its competence. bands from 2,4 GHz to 66 GHz – the dropped from usual 10 – 20 % in April - Au- CTU performed 44 inspections. In 25 cases gust to 6.7 % in September. it discovered shortcomings, particularly em- …portability of telephone numbers Postal service ployment of indoor frequencies outside – in September the CTU performed phys- The Office finished inspection of obser- building. In relevant cases the Office called ical inspection of portability of telephone vance of obligations to label postal consign- for elimination of discovered shortcomings numbers according to the Measure of ments so that from the label is clearly evident and legal procedures were or will be com- General nature stipulating technical and in which operator of postal services postal menced. organisational conditions for implemen- consignment was submitted. Inspections …employment of radio frequencies tation of portability of telephone num- were performed from 3rd March until 30th without authorisation – the CTU per- bers, and namely in the company T-Mo- May 2014 and were focused on 15 operators of formed in total 13 inspections focused at bile and Vodafone including their brands postal services in total. Shortcomings discov- subjects employing frequencies without MOBIL.CZ and Oskarta and within the ered rested particularly in that labels of con- authorisation or after its expiry, particularly framework of inspection no serious short- signments of some subjects controlled did not operation of wifi devices outside permitted comings were discovered. However, the allow to identify positively operator of postal frequency bands and telephones DECT 6.0 Office still considers as problematic long services. The Office evaluated inspections and according to USA standard. In 13 cases the notice periods which are precondition now acts preceding beginning of administra- CTU discovered employment of frequen- of portation of numbers. In the month tive procedure are performed. 9 / 2014 cies without authorisation and will open The Survey of inspection activities in perfomance of control of Postal services and subscriber disputes for the month of September 2014 legal procedure in these cases. number of certifications or the number the numbe the decided in fines imposed …sources of jamming of operation r of numbe favour controls of notices admini r of amount in CZK to kind of activity strative decisio of electronic communication devices participant eliminate provider number of procee ns in total deficiencie which dings promul s and networks, provision of services of gated*) comme nced 1. The number of certifications notifying business activities issued (§ 14 of AEC) 14 electronic communications or opera- 2. 3. The number of changes of certifications notifying business activities (§ 14 of AEC) Performance of communication activities without certification 33 4 1 1 1 20000 tion of radiocommunication services 4. Observance of conditions of general authorisations 61 25 24 29 28 282500 a) for the operation of public communication networks and associated facilities 0 0 0 0 0 0 b) for provision of services of electronic communications 0 0 3 3 3 9000 – the CTU performed in total 234 local in- c) for utilization of radio frequencies and operation of instruments (radio equipment) 5. Inspection of radio frequencies 249 61 25 4 21 11 26 10 25 9 273500 147000 vestigations of which investigations were a) utilization of radio frequencies without authorisation for their utilization b) Observance of conditions of individual authorisation for utilization of radio 13 2 2 7 3 4 4 4 3 101000 16000 frequencies closed in 190 cases of jamming of DVB-T c) locating sources of interference of operation of electronic communication facilities and networks, provision of services of electronic communication or operation of 234 2 1 2 2 30000 reception in total, one case of jamming of radiocommunication servicesradiokomunikačních služeb 6. Inspection of numbers for the purposes of management of numbers (number of 0 0 0 0 0 0 inspection calls) meteoradar and nine cases of jamming of a) on objection against the settlement of reclamation of service provided b) utilization of numbers violating authorisation for their utilization 0 0 0 0 0 0 0 0 0 0 0 public mobile networks GSM and UMTS. As 7. Resolution of subscribers´ disputes a) on objection against the settlement of reclamation of service provided 0 0 1076 1 18741 4 4069 13088 3 0 sources of jamming were identified particu- b) on objection against the settlement of reclamation of charging of services ba) on access to data services with specific price (data and voice) 0 0 12 0 28 0 9 0 3 0 baa) on access to data services with specific price provided on the Internet larly 40 BTS LTE operating in the band 800 network or on other data networks (Dialer) c) on reimbursement of price for services (monetary performance) 0 0 0 1056 1202 18706 490 4057 13082 599 MHz three reprehensible phones DECT and d) others 8. Withholding of information pursuant to § 115 of AEC 0 2 7 3 3 0 3 2000 38500 two active television antennas causing jam- 9. Others IN TOTAL 12 322 4 33 37 1151 69 18853 4069 13088 2097 2926500 59 2438500 ming of GSM and UMTS networks. *) the total number of decisions promulgated includes also cases of termination of administrative proceedings in the form of resolution, i.e. cases of death of subscriber, extinction of a company, interruption of proceedings ex lege (bankruptcy), incompetency to decide etc. Monthly monitoring report -6- September 2014
The Survey of inspection activities in perfomance of State control of electronic communications for the month of September 2014 the number of the number of the number Rozhodnuto certifications or measures in the number of of ve fines imposed inspections the interest of the prospěch the number of administrative administrati proper number of administrative amount in CZK Others proceedings ve kind of activity provision of decisions proceedings participant from the proceeding provider number of services promulgate passing to the in total preceding s which pursuant to § d next month month commence 6 Para. 4 and d § 37 of the 1. 1 The number of certifications notifying business activities issued 0 2. 2 The number of changes of certifications notifying business activities 0 3. 3 Performance of postal activities without certification 0 0 0 0 0 0 0 4. Observance of conditions of the Act on Postal services (hereinafter APS) and other 4 14 0 3 1 1 1 60000 3 regulations 5 Observance of postal conditions pursuant to § 6 of the Act on Postal services 7 0 3 1 1 1 60000 3 6 Observance of conditions of quality requirements pursuant to the Decree no. 464/2012 Coll. 7 0 0 0 0 0 0 0 5. 7 Resolution on objections against the settlement of complaint pursuant to § 6a of the APS 0 4 1 0 0 0 0 5 6. 8 Resolutions on disputes pursuant to § 37, Para 3, Letter a) of the APS 2 0 0 0 0 0 0 0 7. 9 Withholding of information pursuant to § 32a) of APS 0 0 0 0 0 0 8. 10 Others 0 0 8 5 5 4 45000 8 11 administrative procedure pursuant to § 37a, Para.3, Letter a) of APS 0 0 2 1 1 1 15000 2 12 administrative procedure pursuant to § 37a, Para.3, Letter b) of APS 0 0 1 0 0 0 0 1 13 administrative procedure pursuant to § 37a, Para.2 Letter f) of APS 0 0 1 0 0 0 0 1 administrative procedure dealing with mail shipments contrary to § 7, Para.1 of APS 14 0 0 2 4 2 2 27000 4 - § 37a, Para.2 Letter e) of APS administrative procedure pursuant to § 24, Para. 7, Letter a) of the Act on Protection of consumer 15 0 0 2 0 2 1 3000 0 (provision of services in prescribed quality) TOTAL 16 0 15 7 6 0 0 0 5 105000 16 CTU on the side of consume r who are not interested in automatic activation of additional data package, During September of 2014: should have the option to deactivate this service. Currently, the Office in this The CTU opened 1,076 administrative procedures concerning subscriber case performs operations before open- disputes between a person performing communication activity on the one hand ing administrative procedure because and a subscriber on the other hand, regarding monetary payments and proposals of potential suspicion of utilization of to start procedure concerning objection against settlement of complaint of prices aggresive commercial practices, both or publicly available service of electronic communications provided, which the with respect to its own „opt-out“ nature CTU decides according to § 129 of the Act on Electronic Communications. of relevant data package (i.e. subscriber The CTU promulgated 18,741 decision in case, must deactivate the service which he/ she did not order, otherwise the ser- of which 18,706 decision in case of monetary payments (payment of pric- vice may be used and consequently es for services). charged), and with respect to time concurrence of change of contractual FUP Data in Vodafone cording to the statement of Vodafone, conditions with update of systems of On 13th September the company subscribers are continuously informed Internet, mobile, voice and SMS self-ser- Vodafone changed its contractual con- about the status of utilisation of basic vice, mobile application "My Vodafone", ditions. Within the framework of this data package via SMS messages, to- services of operators in call centres and change it introduced charged service gether with the information that they sellers in branch officies scheduled from „Data and framework of packages“, are approaching the border of agreed 12th September until 14th September, where, after exhaustion of basic data data tariff and subsequently the service when subscribers had no chance to de- package belonging to relevant tariff „Data above the framework of package“ activate immediately the service, which employed, additional data package will be activated. According to earlier was activated without their orders just will be automatically activated. Ac- statements of Vodafone, subscribers, in these days. Universal service 9 / 2014 General authorisation no. 1 Public telephones Breakdown of costs and revenues On 12nd September the CTU published On 3rd September the CTU promul- On 15th September the CTU started in the Volume 17/2014 of the Telecom- gated Measure of General nature no. administrative procedure with O2 regard- munication Journal General authorisation OOP/4/09.2014-6, stipulating method- č. VO-S/1/09.2014-5, which modified con- ing imposition of obligation to provide ology of purposeful division of costs ditions for provision of services of electron- partial service of public telephones . and revenues and their assignment and ic communications. New legal adjustment determines structure of information of General authorisation will allow easier Concerning draft decision public submitted. Via this Measure the Office access to the so-called identifiers inevita- consultation was started on 3rd October stipulates methodology of purposeful ble for changing operator, change of ex- within the framework of which it is pos- division of costs and revenues for provid- tent of services or termination of provision er of Universal service and for enterprises of services of electronic communications. sible to submit comments during one with significant market power, on which month. Part of the decision is annex con- this obligation was imposed within the This General authorisation becomes effec- taining all. framework of corrective measures. tice on 1st December 2014. Monthly monitoring report -7- September 2014
Discussion document on implementation of Universal service in the sector of postal services and effects of recent changes in some countries regarding extent of obligations of the Universal service Original document, the whole wording of Czech translation and information on potential sending of comments can be found here. Basic postulates ing group of ERGP will be processed which postal service remain or become Purpose of the Universal postal ser- together in the ERGP Report on imple- indispensable for user. vice is to safeguard service including mentation of Universal service in the Falling volume of standard letter minimum extent of services of deter- sector of postal services and analysis of consignments requires rationalization of mined quality which will be provided in impacts and other changes of extent all Member States for affordable price in and long-term sustainability of obliga- letter activities of providers of Universal favour of all users regardless of their ge- tions to provide Universal service (USO), service (PUS) within the framework of ographical position. It was stipulated in which will be published before the end existing extent of obligations of Universal Regulatory framework (started with the of 2015. service. In this respect some countries de- Green Paper) in 1992) as a reaction to for- Volume of postal consignments are cided or may decide in future to change mer needs and communication environ- decreasing almost in each European extent of obligations to provide Universal ment. This environment has changed. country. This is a significant shift after At the beginning of the nineties the years of increase of volume of postal service. This can be done by change of T h eme o f t h e mont h average trend of annual volume of postal consignments. Said change relates, in- extent of Universal service (US) within the consignments in 12 EU Member States ter alia, to digitizing of economy. ERGP framework of flexibility ensured by the Di- was plus 6,1 % - today annual volumes are Group notices, for example, that the rate rective on Postal services. Some countries falling in the same rate. Although the rate of decline of this volume registered in already began to make changes which of decline in individual Member States European countries during the last pe- should be attentively monitored now. differs considerably, it is necessary to deal riod of known data (2008-2012) differs with this trend together with changing from the decline from -4 % to -40 %,as ERGP Group should consider if and how communication behaviour. It should be shown in Figure no. 1. Considering this this development will fall on sustainability noted that in countries outside the EU (for development it is necessary to find out of Universal postal service and how these example New Zealand, Canada, USA and Australia) transformation of obligations of Universal service already took place (see below). Therefore ERGP Group (European Regulators Group for Postal Services) now considers what steps should Member States take to adopt their obligations. It also considers long-term sustainability of existing requirements of the Directive on Postal Services, including their potential changes which could increase efficiency 9 / 2014 of the Directive as solving problems of social inclusion throughout Europe. The result of this reflection is elaboration of this document, which is the starting point for public consultation and discussion with wider group of interested parties in the workshop. Said workshop will also lead to the second step of workflow, the analy- sis and verification of sustainability of Universal postal service in the context (predicted) of decrease of the volume of consignments and also considering suitability of existing regulatory frame- work in the sphere of Universal service. Figure no. 1: Domestic consignments per capita (without express consignments) Conclusions of public consultation, dis- On the basis of data provided by „Report of the ERGP on indicators in the postal market“ from May 2014 cussion within the framework of the (available online at the address: http://ec.europa.eu/internal_market/ergp/docs/documentation/2014/ workshop and analysis of expert work- ergp-13-33-rev.1-ergp-report-on-market-indicators_en.pdf). Monthly monitoring report -8- September 2014
newly emerging problems will have to be number of days of deliveries to five days impact on costs of the sector of postal solved in future. a weak and introduction of service of de- services and their users. Struktural decline of volume of liveries to community mailboxes. Con- postal consignments is not the problem gressional Budget Office estimates that Identification of problems of European postal markets only but is these changes would save USPS 10.9 evident also in majority of postal mar- bil. USD, and/or 8,1 mld. USD during ten Current situation of obligations of kets throughout the world (potential ex- years. However, the American Congress Universal service ception are some emerging markets). In Assuming that the extent of ob- did not approve any of these changes. some countries regulators, governments ligations to provide Universal ser- This discussion document contains and providers of Universal service have vice in each country corresponds to assessment of the current situation description in WIK-Consult reports taken steps leading to reform of Univer- concerning obligations to provide Uni- „Principal changes in the sector of sal postal services in reaction to the drop versal service considering latest market postal services (2010-2013)“, some of volume. In 2014 Australian post stated that it and regulatory development. Also on additional information were re- will be forced to perform reform to re- the basis of factual information men- ceived from members of the ERGP solve 30% decrease of volume of postal tioned in the news of WIK-Consult in in- group on service and elements consignments during five years. It intro- dividual countries (WIK-Consult Coun- which currently contain the obliga- duced slower class of services for corpo- try Reports) „Principal changes in the tion of Universal service. rate customers as a supplement of its pri- sector of postal services (2010-2013)“ All domestic regulatory bodies ority service (D+1 within the framework were identified five main categories of (NRA) which answered, (23) stated T h eme o f t h e mont h of metropolitan regions of capitals or in problems and these categories were that all recommended individual the same city; D+2 between metropoli- examined via specific questions : cur- consignments are part of obliga- tan regions of capitals and rural regions rent situation of obligations of Universal tions to provide Universal service, and between individual rural regions). service; whereas collective recommended In December 2013 Canadian post • changing extent of obligations mail is included in obligations of announced the plan to shift, within five Universal service (USO) in 13 coun- to provide Universal service during the years, one third of addresses, to which it tries (Belgium, Croatia, France, last 10 years; is still delivered to the door, to deliveries Greece, Hungary, Italy, Latvia, Malta, • obligation of Universal service to community mailboxes. Canadian post Norway, Portugal, Romania, Serbia and subscribers of the market; and Sweden) plus Austria only when maintains that these changes are inevita- • net costs and disproportionate consignment is submitted to the ble to accommodate to lower volumes of burden during the last 10 years; post office (and not when it is filed postal consignments. According to their estimates the shift to community mail- • determination and mecha- in the sorting center). boxes will save 400 to 500 mil. Canadian nisms of funding of obligations of Uni- Minimum number of postal of- dollars each year. Two third of addresses versal service. fices1 is not determined by the Act in Canada have already introduced deliv- On the basis of investigation of within the framework of obligations eries to centralized place as, for instance, events in European countries during the of Universal service (USO) in Ireland mailboxes in entrance hall of apartment last years the ERGP Report will be focused and Sweden. Last of above men- building, post office or to community on potential variants of further customi- tioned countries stated that in the mailboxes or rural mailboxes. zation of requirements on Universal ser- Act on Postal services it is stated : 9 / 2014 New Zealand post negotiated new vice, including consideration of potential „Density of contact places and ac- obligation for provision of Universal ser- changes of the Directive, considering cess places must respect needs of vice (USO). Since July 2015 basic delivery changing communication behaviour, to users“. service will be provided at least three Minimum number of postal ac- ensure that legislators/regulators have days in a weak in urban centers and at cess places (mail boxes) is not re- sufficient flexibility for stipulation of sus- least five days in a weak in PO boxes and quired in 4 countries (Bulgaria, tainable extent of products of Universal in rural areas (considering dependence France, Greece and Sweden). In Nor- service. Report will assess which postal way this element is not properly set of non-postal services on rural delivery services may continue to be indispensa- within the framework of obligations service). New Zealand post maintains ble for users in an increasingly digitized of Universal service (USO) and only that these changes are necessary con- sidering decrease of volume of postal world and in situation when volume of „sufficient number“ of collecting consignments from 1.1 bil. pieces in 2002 postal consignments decreases. Simul- boxes is stated. to 771 mil. pieces in 2013. taneously, potential risks of stipulated In Portugal criteria of density of In the USA during last three years obligations of Universal service will be post offices and access places must the US Postal Service - USPS registered considered as obstacles of entry in the be determined considering distri- loss at the level of 26 bil. USD, particu- market for more effective operators and 1 Directly stipulated obligations of Universal service (USO) or derived from the criteria of larly as a consequence of decrease of as limitation for existing postal operators territorial division within the framework of ob- volume. USPS proposed reduction of the providing services having subsequent ligations of Universal service (USO). Monthly monitoring report -9- September 2014
bution of the population on the removal of specific services from adaptations of obligations of the territory of the country, distance the extent of obligations to pro- Universal service (USO). In this re- between acess places, urban or ru- vide Universal service (for example spect 7 countries (France, Ireland, ral character of covered areas and picture postcards, commercial re- Italy, Latvia, Lituania, Romania and development of transportation and sponse consignments, P. O. boxes, Netherlands) considered changes in demand. Process of determination confirmation of filing in Malta); limi- needs or preferences of consumers is still under way and currently USP tation of number of delivery days, to be a strong reason to open this must maintain minimum values of post offices and collecting boxes (in process. Also, the need to protect density which it offered on 31rd De- Netherlands ); removal of the ser- cember 2013. vice of delivery of collective mail (in end users contributed to it, namely Almost all domestic regulatory one country); changes of targets of in Croatia, France and Latvia, and bodies (NRA) which answered, re- quality of service (limitation of num- also the need to reduce potential plied that all services included in ber of post offices, frequency of de- net costs of obligations to provide the extent of obligations of Univer- livery and removal of services with Universal service in Croatia, Italy and sal service (USO) are exempt from delivery date D+1 in Italy). Netherlands. VAT with the exception of Norway In Great Britain competitors Regardless of factors deter- and Sweden. have argued that the extent of obli- mining the extent of the Universal Objectives of the quality of ser- gations to provide Universal service service, broader or more specific vice (for example share of recom- should be at minimum level to cov- definitions of obligations to provide mended consignments in time D+1 er needs of users in order to reduce Universal service is determined with or D+3) are determined within the potential of distortion of competi- T h eme o f t h e mont h the help of primary legislation in extent of obligations of Universal tion environment created by excep- tions from VAT. all analyzed countries so that regu- service (USO) by all domestic regu- As regards already made chang- latory bodies have sufficient flex- latory bodies (NRA) which answered (23). es of domestic obligations of the ibility for incorporation of changes Universal service (USO), recent his- on the market of postal services in Changing extent of obligations tory shows that in some states detailed demands which are influ- to provide Universal service changes of obligations of the Uni- enced by secondary legislation or during the last 10 years versal service (USO) were already license terms. Bulgaria, Malta and Netherlands made. These changes were focused In this respect all essential stated that they plan to review the particularly on removal of the ser- changes in the sphere of Universal extent of obligations to provide vice of collective consignments and service considered in acts on post- Universal service in the near future 2 . the so-called direct mail, change of al services or decision of ministry Proposals to change postal Act are definition of coverage of the extent (Greece) or in modifications of both under preparation in Netherlands, of obligations to provide Universal acts (Poland). In majority of Member service and modification of weight which will distinctly limit particu- countries it is obvious that the min- categories which are included in larly compulsory number of postal istry responsible for the sector of obligations of Universal service facilities and collecting boxes. postal services transposes directive (USO), what has lead to limitation of In Norway the Goverment initi- the extent of items included in ob- on postal services and determines ated the review of postal regulation ligations of Universal service (USO), rules for regulation of Universal 9 / 2014 considering implementation of the where heavier packages and con- service while domestic regulatory Third Directive on Postal services. signments were removed. body is authorized to specify further Nevertheless, in some countries On the basis of information regulation of the Universal service pressure exists on changes of the provided by domestic regulatory if necessary (with the exception of extent of obligations of the Univer- bodies (NRA) latest changes of the domestic regulatory bodies (NRA) sal service (USO) from providers of extent of obligations to provide Uni- Universal service and in one case of Austria and Serbia, which cannot versal service and all plans of these (Great Britain) also from competi- change the extent of the Universal changes are summarized in Table tors. service). In majority of cases propos- no. 1. In Croatia, Italy, Malta, in Roma- als to change the acts come from On the basis of data received nia, Sweden, Netherlands and in one domestic regulatory bodies (NRA) it is evident that liberalization has another Member State providers of on the basis of facts discovered in started changes within the extent Universal service demand potential of obligations of Universal service the market while some regulatory changes of the extent of obliga- (USO) in 10 from 13 countries (Aus- bodies participate also in the pro- tions of the Universal service (USO). tria, Bulgaria, Croatia, Czech Repub- cess of creation of national frame- Among changes proposed belong: lic, Latvia, Lituania, Italy, Poland, work for postal service. 2 Malta intends to review current extent of obligation to provide Universal service within Portugal and Romania). In some the framework of Postal Directive of the EU. cases factors existed which lead to Monthly monitoring report - 10 - September 2014
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