Netnod response to the PTS market analysis

On 12 June 2023 Netnod was given the opportunity by the Swedish Post and Telecom Authority (PTS) to comment on the market analysis (“marknadsanalys”) per the European Electronic Communications Code (Directive 2018/1972).

Netnod has submitted a formal response which is available in Swedish here.

In general, Netnod is of the opinion that PTS suggests a geographical and product market definition which implies that electronic communications services are vertically integrated services, rather than services produced through the coordination of many actors, many of which are network operators. 

In particular, the analysis does not consider functional aspects of connectivity, such as addressability and reachability, and rather focuses on non-functional aspects such as last mile throughput. Throughput in itself is also a problematic concept, since the analysis suggests that throughput is a property of the packet exchange done at the customer premise, rather than a property of the connection between two nodes on the network / Internet. 

In addition, the market analysis does not touch in detail on the services offered, such as the different types of Internet-access-services and other types of services offered via electronic communication networks. 

In terms of markets, the analysis is based on the notion that there exists three well defined last-mile technologies, when in reality most last-mile accesses are built by mixing technologies. For example, it is not clear if a copper + optical fibre connection (for example copper from apartment to fibre optic equipment in the basement) should be classified as copper or fibre. This discrepancy of model and reality will ultimately lead to a larger discrepancy between the description of infrastructure in the regulatory environment and the actual implementation of infrastructure.

Furthermore, Netnod considers that the EU, and Sweden, should strive for Internet promoting electronic communication market analysis, not analysis promoting vertically integrated services.