Review of pricing and access arrangements for the Metropolitan Area Networks (MANs)

These two reviews are independent reviews of the operation of the Metropolitan Area Networks (MANs) by enet. The first review was commissioned by our department in 2017 and was carried out by Analysys Mason consultants, before being referred to ComReg, the Commission for Communications Regulation.

The Analysys Mason review examined pricing of MANs products and compliance by enet with the key principles underlying the MANs Concession Agreements, which are: to provide open access to the MANs on an equality of treatment, non-discriminatory and transparent basis to all service providers.

The review made a number of recommendations which are currently being implemented by enet including a reduction in the maximum annual price of dark fibre by over 50% to €2.60 per metre.

The review identified that enet was not in compliance with the agreed Code of Practice in relation to its approach to intercompany transfer pricing.

On 13 February 2019, the Minister then requested ComReg to:

• Establish whether enet complied with its obligation under the Code of Practice to offer managed services on the MANs in the context of national end to end services at non-discriminatory prices such that its related company, enet Telecommunications Networks Ltd did not obtain a material unfair advantage
• Confirm the revised intercompany transfer pricing arrangements in place are in compliance with the Code of Practice
• Confirm that the Analysys Mason recommendations are being implemented
• Based on the findings of its review, make recommendations to the Minister

The outcome of the ComReg review was received by the Minister on 10 August 2020.

The ComReg review noted that of the 12 recommendations set out in the Analysys Mason report, ten have been implemented in full and two recommendations have been partially implemented. For the two that are partially implemented, the review considered that the main issue to be addressed related to improving the documentation of discounts. The review made two additional recommendations for process enhancements.