OREANDA-NEWS. On April 06, 2009 the Federal Antimonopoly Service (FAS Russia) held a scheduled meeting of the Expert Council on Communication, reported the press-centre of FAS Russia.

The main subject of discussion was interaction between the providers, including contracts for connection and network interconnection, and inter-carrier settlements for reciprocal services.

The Expert Council heard different points of view expressed by the landline service providers ("Svyazinvest" OJSC, "MGTS" OJSC) and other providers ("MTS" OJSC, "Sinterra" CJSC, the Association of Electronic Communication Providers, the Association of Regional Communication Providers) regarding the issued related to the contracts for connecting telecommunications networks and amending the existing contracts.

FAS Russia presented statistics of antimonopoly violations in communications (in 2008 providers committed over than 165 violations, which put them on the second place among economic entities) (See the Table). The Expert Council discussed specifics of violations related to interaction between large and small providers (typically, mono-specialized), as well as between large providers competing with each other along a wise range of services. It was emphases that FAS Russia's investigations were quite productive, especially taking into account the system of "turnover" penalties.

Upon participants' request it was decided that FAS Russia would forward the explanations on processing typical petitions of communications providers on violations of the Federal Law "On Protection of Competition" to the regional offices of FAS Russia.

The Expert Council pointed out that adopting the Rules of non-discriminatory access would radically improve the situation. The Rules were formulated with participation with members of the Council and the Expert Council approved the Rules in July 2008 года. Participants of the Expert Council's meeting were informed about the process of mutual agreement on the Rules of non-discriminatory access to the services of publicly accessible electric communication and infrastructure for electric communication. The latest version, improved with due consideration of the criticism from the authorities, will be forwarded to the members of the Expert Council.

The Council also emphasized importance of developing the "rules of the game", in particular, recommendations on the policy of mutual settlements in the business community. It was pointed out that any forms of cooperation (from expert councils to self-regulating bodies) would be useful.

Members of the Expert Council also noted the trend when communication services providers were assigned different statuses, such as "an existing communication provider", "a subject of natural monopolies", or "an economic entity that has dominant position", which impose certain obligations upon providers. In this connection the Expert Council observed that according to the global common practice obligations are assigned to an economic entity only if it enjoys market power, or, in other words, occupies the dominant position on the relevant market.

Therefore, it was proposed that the industry regulations should be adjusted in accord with the basic antimonopoly legislation. In particular, the concept of "a subject of natural monopolies" should be defined in terms of the dominant market position in the sectors specified by the law, taking into consideration that dominant position emerges/ strengthens through control of infrastructure facilities. FAS Russia informed the members of the Expert Council that similar changes are being prepared as part of the proposed amendments to the Law "On Natural Monopolies". It would also be expedient to forgo the concept of "an essential provider", applying if necessary the concept of "the dominant position on the relevant market".

The second item on the agenda was deployment of the means of communication at the facilities in the state and municipal property.

According to FAS Russia, service providers that intend to place their communication equipment at the facilities in state or municipal property face serious obstacles. Typically, to place such equipment providers need to get the right to use small areas (10 - 20 sq.m) The owners (the persons legally possessing the property) are not particularly happy to organize tenders specified in Article 17.1 of the Federal Law "On Protection of Competition" because the costs of organizing such kind of tenders considerably exceed possible profit from the use of such space.

In overwhelming majority of cases, state and municipal property do not constitute scare resources. In a very few cases related to some property portfolios (high-rise towers, etc.) several communication providers can lay claims for placing their equipment in the same premises under limited technical capabilities. In the opinion of the member of the Expert Council, in this case the antimonopoly control can be exercised in the form of control over state aid (preferences), regulated by other norms of the Federal Law "On Protection of Competition".

Summing up the discussion, the Expert Council decided to formulate and send to FAS Russia proposals on amendments to Article 17.1 of the Federal Law "On Protection of Competition" regarding the exemptions for providing facilities in state or municipal property for placing the means of communication.

Anatoly Golomolzin, Deputy Head of FAS Russia and Chairman of the Expert Council, informed members of the Expert Council on launching another FAS Russia's Expert Council - "On developing competition in information technologies". Mr Golomolzin advised the meeting on possibilities of taking part in the work of the new Council, particularly, on developing competition on the market for providing the Internet access services, as well as on improving the bidding procedures in state procurement of informational and telecommunication services. The proposal was approved.