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Assessment of the technicalities of VULA products in the context of a state aid investigation
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Assessment of the technicalities of VULA products in the context of a state aid investigation

Expert opinion

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In June 2015, the Commission approved the provision of state aid to support the deployment of high speed broadband connections in Germany. The conditions set out in the state aid decision require an approval of VULA products before operators are permitted to use vectoring technology (or other solutions which impede physical unbundled access) in the subsidised areas. In September 2016, Germany submitted three VULA products to be supplied by the operators DNS:NET, NetCologne and Deutsche Telecom. This report provides an expert opinion as regards whether the submitted German VULA products meet best practice standards as regards offering equivalent functionality to physical unbundling. In this context we (i) identify key VULA characteristics with reference to EC and BEREC documentation; (ii) identify ‘best practice’ characteristics with reference to an analysis of VULA characteristics in Austria, Denmark and the UK; (iii) compare the submitted German VULA products with the identified best practice characteristics; (iv) draw conclusions on the impacts of the submitted products on competition with reference to counterfactual cases; and (v) make recommendations concerning changes needed to the submitted products in order to meet the requirement that they be functionally equivalent to physical unbundling. The results of the first version of the expert opinion had been exchanged with the state aid applicants, giving them the opportunity to improve their products and overcome shortages recognized by the Commission. This led to clarifications and modifications of the suggested products for which ultimately a revised version was submitted. Basis of this version (2) of the expert study are the final contracts for state-aid VULA products of the three operators dated of July 31rst respectively August 2nd. Because none of the applicants now use contract and product describing documents with business secrets this report is free of any confidentiality restriction.
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ISBN 978-92-79-79903-7
DOI 10.2763/342502
Numero di catalogo KD-04-18-126-EN-N
PDF
ISSN ISBN 978-92-79-79903-7 DOI 10.2763/342502 Numero di catalogo KD-04-18-126-EN-N
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