We consider the following regulations to be the most important for our business at the moment:- Access to wholesale broadband services (also known as Bit Stream Access, or BSA) and physical access to the last mile infrastructure (Local Loop Unbundling, or LLU) are mandatory under cost orientation obligation (verified by Margin Squeeze/Price Squeeze tests) and non-discrimination rules (including Chinese Walls), and this legislation covers both fibre and copper lines. Orange Polska is not obliged to provide BSA on fibre and copper infrastructure in 151 deregulated municipalities. LLU is not required in 51 deregulated municipalities. The Company, as other beneficiaries of public funds, is also providing wholesale access to its network built within the POPC programme based on BSA and LLU, as well as access to infrastructure.
- Regulation of call termination services. The level of termination rates is established in the Delegated Regulation, and the following rates apply:
- The single EU-wide maximum rate for voice call termination on a mobile network (MTR) will be 0.2 euro cents per minute from 1 January 2024. Since 01.01.2023 MTR was decreased to PLN 0.0190.
- The maximum EU-wide rate for terminating a voice call on a fixed network (FTR) has been at 0.0032 PLN 0/min since 01.01.2022.
Obviously, as a business entity, we must also comply with administrative decisions and general law and regulations.
Further amendments to telecom rules are pending at both European and national level.
Recent trends in the regulatory environment
In 2022, the legal environment was characterized by instability and high dynamics of change. Changes resulted both from the adaptation of Polish law to European Union law and from national initiatives. Frequent, wide-ranging and fast-paced legislative changes entail the need for constant and careful monitoring of the environment, especially as many of the changes underway involve the imposition of new obligations and consequently require complex and costly implementation and adaptation measures.
One of the most important regulatory developments in the telecommunications sector – the implementation of the European Electronic Communications Code – continued in 2022. Adoption of the new Electronic Communications Law (PKE) is planned for 2023. The current Act – the Telecommunications Law – has been in force for almost two decades. A number of revolutionary solutions will be introduced, opening a new chapter in the provision of electronic communications services, including the return of unused prepaid funds, direct billing regulations (adding payments for services purchased online, e.g. games or music, to the telecommunications bill), new pre-contractual information obligations, partial regulation of over-the-top services, and changes to contracts.
National legislative acts of significant sectoral relevance for telecommunications that were adopted in 2022 covered such areas as consumer protection, energy, infrastructure reporting system, security and defence, special prepaid solutions for Ukrainian citizens and construction law, among others.
Acts of significant relevance at the EU level include those on cybersecurity and the establishment of a new regulatory framework for digital markets and services. There are ongoing legislative works (currently at the government level) on the draft act on amending the act on the national cybersecurity system. In particular, the draft provides for the assessment scheme of so-called ‘highrisk vendors’, creation of the National Security Network, and some operational amendments regarding security of networks.
Recently, the regulatory policy has concentrated on amending domestic regulations and monitoring the EU regulations. The extended regulations lead to implementation of IP interconnection for termination of calls in Orange Polska’s network. The Polish NRA also focuses on new rules of regulation of access to wholesale broadband network by reviewing partially regulated BSA and LLU markets, but also issuing decisions regarding access to networks of beneficiaries of EU funds. New reporting obligations are also being implemented with respect to network elements, coverage of fixed and mobile networks, services, and investment plans. At the same time, the implementation of the EU regulations is monitored especially in the areas of roaming regulations and open internet regulations.