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Report on activities of the President of UKE for 2014 Activities of the President of UKE in the scope of: • development of telecommunications networks and services telecommunications market analyses Interconnection end-user protection and universal service monitoring activity • development of postal services and market liberalization liberalization of the postal market universal service telecommunications infrastructure numbering resources management monitoring activity frequency resources management broadcasting international cooperation in the scope of telecommunications services market legal proceedings conducted by the President of UKE international cooperation in the scope of postal services market Telecommunications market analyses Action Conclusion Effect Regulation of the retail leased line market (7/2013) Identifying effective competition in the market Withdrawing regulatory obligations imposed on TP SA (currently Orange Polska SA) Regulation of the wholesale broadband access services market (5/2007) Delineating two separate markets: • Area of municipalities with lack of effective competition • 76 municipal areas, where effective competition exists. in the first market regulatory obligations were imposed on Orange Polska SA In the second market regulatory obligations were withdrawn Review of the national and international markets of telephone calls in a fixed location (3-6/2003) Identifying effective competition in the markets Withdrawing regulatory obligations imposed on TP SA (currently Orange Polska SA) Interconnection Proceedings on settling dispute between operators on telecommunications access (Article 28 of the Telecommunications Act) • • 48 proceedings on telecommunications access conducted under Articles 27-31 of the Telecommunications Act, 109 administrative proceedings initiated before 2014. The proceedings referred to i.a.: • disputes between operators concerning adaptation of the agreements to the provisions of the so-called Super Reference Offer (SOR), • establishment/change of the cooperation and clearing conditions for the access services to the smart network services for the network users, • access to technical infrastructure of Orange Polska (OPL) and alternative operators. In the conducted proceedings the President of UKE issued in 2014 i.a. the following decisions/resolutions: • • • • • 56 decisions referring to the telecommunications access, including i.a.: 8 decisions settling disputes, 10 decisions refusing to determine conditions of cooperation in the scope of telecommunications access), 2 resolutions specifying the date of negotiations completion in regard to telecommunications access, 2 resolutions refusing to complement a decision, 2 resolutions refusing to initiate a proceeding. End-user protection and universal service Demand maps At the end of 2014 maps of demand pictured data gathered on the basis of about: 49 000 fixed Internet submissions, 21 000 fixed telephone submissions, 386,000 hotspot submissions. Memorandum on the quality of services Permanent Consumer Arbitration Court "Report on the works conducted under the Memorandum on cooperation for improvement of the quality of services in the telecommunications market" 206 cases were the Arbitration Court. brought before Unified, common requirements as regards quality parameters of telecommunications services and its measurement were determined that shall be applied by providers. Subject-matters of the disputes concerned in particular: - fees for early termination of an agreement on the provision of telecommunications services (prior to the period for which the agreement has been concluded), - fees for the provision of telecommunications services, - compensations for improper provision of postal services. End-user protection and universal service Consumer policy Within the carried out interventions and mediatory proceedings the Office “recovered” 1 434 670.69 PLN for the benefit of consumers. 2944 mediatory proceedings were carried, of which: 1381 were completed in favour of consumer. The Office examined 5474 applications for intervention, of which: 3857 were completed in favour of consumers. Monitoring activities Inspections in the scope of telecommunications Financial penalties Product inspection 18 ad hoc inspections, which concerned i.a. the use of allocated numbers, compliance with the scope and rules of providing Internet access service free of charge by local government units. 1526 administrative proceedings to impose financial penalties. 1610 products were subject to inspection concerning compliance with essential, detailed and other product requirements by these products. Within the inspection 513 noncompliant products were found, which accounts for 31.86% of all products inspected. 10 planned inspections, concerning compliance with the obligation under Article 36 of the Telecommunication Act by the entrepreneurs. The most important proceedings to impose financial penalty included i.a. proceeding concluded with imposing a financial penalty on P4 Sp. z o.o. for infringement of the telecommunications secrecy obligation. In 2014 laboratory tests of 441 products were carried out. Out of all the rested products 140 did not comply with the essential or detailed requirements. Telecommunications infrastructure • • • The "Report on the coverage of the territory of the Republic of Poland with the existing telecommunications infrastructure and public telecommunications networks securing or enabling the securing of broadband access to the Internet" was published; Database on infrastructure and broadband services (SIIS) was modernised; 57 administrative proceedings under Article 30 (1) of the Mega-law and Article 139 (1) of the Telecommunications Act in scope of access to property, as well as Article 17 of the Mega-law concerning access to infrastructure of an entity performing public utility tasks. Map 1. Number of investments carried out in the areas of 2G and 3G "white spaces" Source: Raport on the coverage of the Republic of Poland with the existing telecommunications infrastructure, investment projects implemented in 2013 and planned for 2014, as well as with buildings enabling collocation, August 2014. Telecommunications infrastructure Chart 1. Number of infrastructure thefts Source: UKE on the basis of Report on activities of the President of UKE for 2014, April 2015. Memorandum on counteracting theft and devastation of infrastructure Effects of activities undertaken under the Memorandum of cooperation in counteracting theft and devastation of infrastructure, signed on 23 August 2012, comprised i.a.: • introduction of amendments to the Act on Waste, • incorporation of the Memorandum to the "Together for safety" governmental project, • reducing the phenomenon of theft of telecommunications infrastructure, • establishment of the Foundation to counteract theft and devastation of infrastructure, • promoting the activities during Ist International Conference on counteracting metal theft. Numbering resources management Location and Information Platform with the Central Database (PLI CBD) Almost 500 decisions were issued within numbering resources management in 2014. Those concerned: • numeration for the public telecommunications network (geographic numbers for the PSTN in fixed location), • non-geographic numeration for the PLMN (including MVNO), Since 31 March 2011 the President of UKE has been managing the PLI CBD system, which is a part of nationwide Emergency Notification IT System. The Platform is used to provide systems and services responsible for handling emergency calls with information on end locations of telephone networks. Thanks to PLI CBD emergency response time of the legally appointed rescue services has shorten. • non-geographic numeration for the provision of phone service using the packet data transmission in IP technology (VoIP), • access numbers for the ICT network NDSI, • international and national signalizing NSPC and ISPC points, • access numbers for the intelligent network INDN, • access numbers for the NDS network, • the Special Services Subscriber AUS numbers, • mobile network codes (MNC), • NR NP routing numbers. Frequency resources management The President of UKE issued in 2014 in total 67 923 of various decisions connected with managing the use of spectrum. Type of decision: Number Decisions in point-to-point fixed service Decisions in mobile service issued for the mobile network operators 23 186 Decisions in mobile service for the RRL network 2 066 Decisions in the aeronautical service Decisions on the allocation of identification numbers and decisions in the maritime service 38 758 640 identifications – 329 stations – 346 Decisions in the scope of radio broadcasting 621 Decisions in point-to-multipoint fixed service 1714 Decisions in the scope of television broadcasting 202 Decisions in the satellite services Decisions in the amateur service issued for foreigners 56 Total 5 67 923 Auction for the reservation of frequencies of 791-816 MHz and 832-857 MHz, as well as of 2500-2570 and 2620-2690 MHz bands On 19 October 2014 the President of UKE announced an auction for 19 general exclusive frequency licences in the 800 MHz and in the 2.6GHz bands, each valid in the territory of entire country, allocated for the provision of telecommunications services in the mobile or fixed radiocommunications service. Allocation of the 800 MHz band should lead to increase of the number of entities participating in the development of fast Internet access. Auction participants will be committed to commercially launch their services within 12 months of the date of delivery of the general exclusive frequency licence in the 800 MHz band and not later than within 36 months of the date of delivery of the general exclusive frequency licence in the 2.6 GHz band. Moreover, auction participants who receive general exclusive frequency licences in the 800 MHz band will be committed to cover, with their own network, at least 83-89% of the municipalities indicated by the President of UKE. Broadcasting Until the end of 2014, 1001 radio stations were launched in Poland, 309 of them broadcasts channels of Polskie Radio S.A, or regional channels of Polskie Radio S.A. In 2014 the President of UKE conducted inspections as regards: • combating interferences between national services and transmitting stations, • interferences notified by other administrations. International cooperation Cooperation in the International Telecommunication Union (ITU): • The International Telecommunication Union's Plenipotentiary Conference, • World Summit on Information Society (WSIS) • Global Symposium for Regulators, Activities within the European Union: • Cooperation in the Communications Committee (COCOM), • Cooperation with the Council of the European Union, • Cooperation with the Court of Justice of the European Union. Cooperation in the Body of European Regulators for Electronic Communications (BEREC): • Stimulating development of the Next Generation Networks, • Consumer protection, • Supporting the internal market. Bilateral cooperation: Algeria, Bosnia and Herzegovina, Montenegro, Georgia, Moldova, Oman, USA, Thailand, Ukraine. Legal proceedings conducted by the President of UKE 206 cases in total were submitted to UKE, that is: • 56 appeals before the Court of Competition and Consumer Protection (SOKiK), • 121 complaints before the Voivodeship Administrative Court (Wojewódzki Sąd Administracyjny, WSA), • 2 cases concerning disclosure of assets, declaration of claim, file for bankruptcy, legal action on the basis of Article 299 of the Commercial Companies Code, call for amicable settlement, as well as joining a civil case by the President of UKE. Liberalization of the postal market Contest for the designation of postal operator to provide universal services On 30th December 2014 the President of UKE announced contest for the designation of postal operator to provide universal postal services within domestic and international traffic. Responsibilities of the newly designated operator shall cover the period of 10 years from 1 January 2016 until the end of 2025. Regulatory accounting Regulatory reporting manual and description of cost calculation of the designated operator for 2015 were approved, which will allow for monitoring the correctness of cost and revenue allocation and the method of calculating unit costs of universal services. It will also have an impact on the net cost of USO and level of fess for these services. Rate of return of capital employed for the designated operator With the decision of 19 May 2014 the President of UKE determined the rate of return of capital employed for the designated operator. Universal service Draft amendments to the price-list of Poczta Polska Net cost of universal service obligation for 2013 In 2014 Poczta Polska S.A. submitted a draft amendments to its binding price-list for universal services, which concerned modification in the way of dealing with postcards, as well as a fee for economic postcard in the national traffic. The amendments came into effect within the deadline planned by Poczta Polska S.A., i.e. by 7 April 2014. On 29 January 2014 Poczta Polska S.A. submitted a draft description of net cost calculation for 2013 to the President of UKE for agreement and approval. On 30 June 2014 the President of UKE issued a decision amending the above-mentioned draft description and approved the description of net cost calculation incorporating the amendments. Monitoring activity 36 postal operators operating on the basis of entry in the register of postal operators and 4 undertakings that are not postal operators were subject to control. Quality of service tests for universal postal services As a result of tests on the routing time of unrecorded letter items in domestic traffic in 2014, it was found that: As a result of the tests on routing time for delivery of postal parcels carried in 2014, it was found that: 65.4% of priority letter items were delivered in time D+1, 84.4% of priority postal parcels were delivered in time D+1, 91.2% of priority letter items were delivered in time D+2, 99.4% of economic postal items were delivered in time D+3. 97.3% of priority letter items were delivered in time D+3, 81.6% of economic letter items were delivered in time D+3, 97.3% of economic letter items were delivered in time D+5. International cooperation in the scope of the postal services market International activities of the President of UKE within the postal market: • European Regulators Group for Postal Services (ERGP), • Postal Directive Committee, • CERP - European Committee for Postal Regulation, • Universal Postal Union (UPU).