This position amends the Position of the President of UKE of 15 July 2010 regarding the control of the compliance with some of the regulatory obligations, including the assessment of the price lists and regulations of the provision of services, by the operator having significant market position on the retail market.
The current position takes into account changes that occurred in the retail markets, having regard to the scope of deregulation until now and the current compliance with regulatory obligations by the operator having significant market position on the retail market.
In this position the President of UKE:
- aligned the scope of regulatory obligations to the currently binding, stipulated in the regulatory decisions;
- clarified methodology for the examination of price undercutting and bundled offers;
- described non-price factors that are taken into account in the evaluation of price list offers – standard, bundled, as well as offered for a fixed term on promotional terms - proposed by the operator having significant market position on the retail market;
- updated the current legal and factual situation, including the binding WACC level which is an indicator to determine the reasonable margin level.
Following analysis of opinions submitted in the public consultations held between 5 May and 6 June 2016, the position was supplemented with a clarification regarding reasonable margin applied by the President of UKE in the examination of the SMP operator's margin squeeze practice and price undercutting. The reasonable margin is calculated on the basis of weighted average cost of capital, i.e. WACC OPL=8.36%, for services performed on the basis of copper access network infrastructure and services performed on the basis of infrastructure which constitutes modernisation of existing access networks.