Market analysis of the local loop market

18 July 2023

The Office for Communications finds based on an analysis of the wholesale market for physical access to local loops provided at fixed locations ("local loop market") that Liechtensteinische Kraftwerke (LKW) has significant market power.

In order to prevent potential negative consequences of the lack of competition, the Office for Communications imposes special regulatory measures:

Access

This essentially concerns access to dark fibre in the access network (local loop fibre). Supplementary access to core network fibre, cable ducts and other services in the access centres of LKW, which are required for the use of the local loops (called "annex services") are also regulated as part of the present market analysis.

Transparency and equal treatment

LKW will be required to publish the approved reference offer.

Cost-based charges

The cost calculation model ensures that charges are cost-based.

The consultation rounds on the market analysis, the reference offer, the documents on cost calculation and the WACC calculation relevant for the regulation of charges, and the technical operating provisions on connections of properties to the fibre optic network will be published in order to inform market participants about the envisaged regulatory measures and to give them the opportunity to comment.

Consultation documents

Local loop market analysis

Reference offer PDF   MS Word 
(updated on 21 July:  added penalty for local loop fibre in Annex 4)

Technical operating provisions PDF  MS Word

Description of cost calculation

WACC calculation

Commenting statements can be submitted by 18 August 2023. Statements can be emailed to info.ak@llv.li or sent to the Office for Communications using the secure data submission form. If you have any questions, please do not hesitate to contact Mr. Silvio Giorgetta, silvio.giorgetta@llv.li, tel. +423 236 64 86.

21 September 2023

Statements and evaluation