Market analysis data reporting

hu

Pursuant to Act C of 2003 on Electronic Communications (Electronic Communications Act), the President of the NMHH generally defines markets and produces market analyses on the basis of the European Commission’s decisions, recommendations and guidelines on the harmonised application of the law, according to the relevant rules of competition law, while also taking other factors into consideration. The NMHH is entitled to order mandatory data reporting for market analysis purposes in all electronic communications markets, including mobile, broadcasting, fixed internet access, leased line and VPN services.

The purpose of data reporting is to provide the Authority with a comprehensive picture of the structure of the market, the functioning of competition and the balance of power between market players, based on the detailed market data that operators are required to provide. Accordingly, the NMHH will issue a decision requiring the operators concerned to provide data, and will use the data received to examine whether the operator concerned hold significant market power, and to substantiate any necessary regulatory interventions.

The results of the market analyses form the basis for the Authority’s market regulation decisions, whether they concern fixed, mobile, broadcasting, internet access, leased-line or VPN services.

Fixed telephony markets

The market for fixed telephony services covers operators providing public voice services, typically over a fixed network (copper, cable or fibre infrastructure), at a fixed geographic location, including traditional fixed telephony and functionally similar fixed VoIP solutions. In defining and analysing the market, the NMHH identifies separate product markets and geographic markets — retail and wholesale markets — (for example, fixed voice services provided at fixed residential or business termination points), examines substitutability and the terms of competition, and then decides whether there is an SMP operator in the relevant market, and whether regulatory intervention is necessary.

Mobile markets

In the mobile (radio access-based) electronic communications markets, the Authority applies market definitions derived from the EU regulatory framework but concretised at the national level. As with fixed markets, a distinction can be made between retail and wholesale markets, although EU regulation in recent years has focused primarily on wholesale. Today, wholesale mobile call termination and mobile network access are the markets that are the focus of regulation, and the subject of detailed market analysis by the NMHH.

Broadcasting markets

Markets in the broadcasting segment are defined along a logic similar to that of the fixed and mobile infocommunications markets: the EU regulatory framework provides the conceptual framework, but the specific markets and their content are determined by the NMHH based on the specific characteristics of the Hungarian market, following a market analysis. For broadcasting markets, the NMHH primarily defines a retail market in a technologically neutral way, assessing the state of competition on this basis. Meanwhile, wholesale regulation is something of an exception, only required in the case of certain specific market problems.

Fixed internet access markets

Here, the NMHH defines a single retail market (“Retail market for fixed internet access services”) and several wholesale markets, with the primary objective of regulation being to promote effective competition and expand end-user choice through the provision of network access.

Market for leased-line and VPN services

In the market for leased-line and VPN services, the NMHH defines one retail market and one main wholesale market, with the purpose of regulation being to maintain competition for high-capacity business data transmission services, and to prevent market distortions resulting from network dominance.