In December 2008, the Finnish government adopted the “National Broadband Plan 2009-2015”. This document set out a legislative change to the USO element of the Communications Market Act, (requiring it to be amended on or before 2010) to include a broadband connection USO. The download speed was set at a value of at least of 1 Mbit/s. This legislative change was implemented in 2010 by the Finnish Ministry. This required TRAFICOM to examine, where necessary, the data transfer service markets, the prevailing connection speeds available to the majority of subscribers and the level of technological development, and to produce an analysis of the financial impact of the broadband regulation on ECS operators.

Accordingly TRAFICOM used the parameters set out in its national legislation, using geographical survey, and its own specific broadband data speeds information to assess the expected availability of broadband without public intervention. TRAFICOM did not develop a list of online services or use a model to estimate connectivity levels (in Mbit/s) and the investment needed to deliver it. TRAFICOM introduced a broadband USO of 1 Mbit/s in 2010.

In 2015 TRAFICOM amended the broadband USO to 2 Mbit/s through Regulation 439/2015. This currently applies to the availability and affordability of a broadband connection only at primary residential premises, where no cost cap per premise applies. Some variation is permitted. The average minimum speed is 1. 5 Mbit/s over a 24 hour measurement period and 1 Mbit/s over any 4 hour measurement period.

The basis for the selection the USP(s) is set out in national legislation and is required to be efficient, unbiased, open and non-discriminatory based on a ranking of ECS service providers using pre-defined benchmarks (e.g. the financial capacity of comparable ECS operators to operate; comparison of networks; and a TRAFICOM selection where operators’ capabilities are equal). TRAFICOM has designated three regional USPs, Telia, Elisa and DNA. The designation period is open ended, as the national legislation requires TRAFICOM to amend its current decision where there are significant changes to the matters which underpin the relevant decision.

TRAFICOM monitors the USPs compliance with broadband USO through both a process of continuous monitoring and based on the number of recurring broadband access connection complaints.

TRAFICOM has placed affordability obligations on the USPs (based on criteria for assessing affordable prices)[72] in respect of general price level of ECS services and the income level of the population.

To date no USP has made a funding application. Where applicable, the broadband USO would currently be funded by public funds.

Latvia

Figure 34: Latvia

Latvia (SPRK) introduced a broadband connection USO in 2010. This was subsequently revised in 2016 to no less than 9600 kbit/s broadband USO (no upload or download speed has been explicitly defined). The evaluation criteria used by SPRK are unknown (e.g. whether consideration was given to the national broadband uptake of 50% of households; and the speed being equal to or above the data rate used by 80% of households with a broadband connection). The current broadband connection USO is applicable to primary residential premises only, with no cost cap per premise. No online list of services has been developed based on social and digital inclusion and no model has been developed or used to estimate the connectivity levels (in Mbit/s).

SPRK has designated the incumbent Lattelecom (tet) as the national USP. The designation period is unknown. There is no QoS or technical parameters defined. SPRK currently monitor the USP’s compliance with its broadband USO obligations based on the number of broadband access connection complaints received by SPRK, who ultimately decide whether any non-compliance with its broadband USO obligations has occurred.

SPRK has introduced broadband USO affordability measures specifically for disabled end-users, who receive 10% discount on connection fees associated with broadband internet access services and associated ECS bundles; and a reduction of 8.65 LV/ (€12) per month on all associated rental fees.

Broadband USO funding applications have been received by SPRK. Where applicable, the broadband USO is currently funded by public funds.

Malta

Figure 35: Malta

Malta introduced a broadband USO with a guaranteed speed of 4 Mbit/s in 2011, for at least 97% of the population, at all premises.[73] In exceptional cases (i.e. economic (absence of comparable available offers in the market) or technological factors) a connection may be provided at a lower speed, however this could not be lower than 2 Mbit/s. It was not confined to a specifically identified group.

The MCA used the evaluation criteria outlined in the table above and the data rate was set by taking into account the prevailing bandwidth used by the majority of subscribers and technological feasibility. MCA took into consideration data on fixed broadband penetration per population, national broadband take-up rate per household and the broadband speed used by the majority of subscribers. As of December 2010 more than 50% of the households in Malta used broadband at a data rate equal to, or above 4 Mbit/s.[74] MCA did not develop or use a list of online services that end-users should be able to access to ensure social and digital inclusion. MCA did not set specific QoS, as MCA in 2013 established a QoS framework for all providers of fixed broadband internet.

The MCA did not define any specific broadband USO affordability measures in its current decision, as the USP is required to provide reduce tariff options/packages for fixed line rental that are lower than those offered under normal commercial market conditions to low income and /or special needs individuals.

The designation was based on the USP’s adequate technical abilities, experience and knowledge in providing universal service. In order not to exclude a priori any undertaking, the MCA invited expressions of interest from all interested parties. The MCA invited any interested parties to submit their interest in writing to the Authority in providing the universal services. Since no operators willingly expressed its interest in providing universal services, the MCA designated the undertaking ‘GO’ to fulfil the universal service obligations.

The MCA modified the broadband USO on 1 July 2015 to only be applicable in the case of market failure (i.e. where no other undertaking is offering a broadband access connection in a particular geographic location). No model was developed or used to estimate the connectivity levels (in Mbit/s) and investment needed to deliver the service. All other aspects of the previous broadband USO (excluding market failure) were retained and the USP was re-designated. One USP (GO Plc.) was designated nationally for a period notionally set at 4 years.

The MCA monitors compliance with broadband USO obligations on a quarterly basis using the Functional Internet Access (FIA) connection report which the USP is mandated to provide MCA on a quarterly basis and the number of end-user complaints re inability to access a broadband connection and/or at the specified bandwidth. The FIA connection report includes data on (i) total number of USP broadband connections; (ii) percentage of total broadband connections that are capable of achieving the minimum speed; (iii) total number of new broadband connections installed during the period; (iv) total number of new broadband connections installed during the period that are capable of achieving less than the minimum speed; (v) number of new broadband connection capability related complaints during the period; (vi) total number of broadband access connection related complaints during the period (vii) total number of broadband connections not capable of supporting the defined minimum speed USP provided report and a description of details on the locations that are not capable of supporting 4 Mbit/s and the work programmes in place to reach the minimum data rate if applicable.

Where an end-user expresses doubts about the broadband capability of a line the USP is required to provide a written statement on the data capability of that line to the end-user. Where a given line is incapable of achieving the minimum bitrate, the USP must tangibly demonstrate that it is in the process of, or planning to make improvements to its network (whether equipment, line, or both) in respect of the given line.

Broadband USO funding applications have not yet been received by MCA. Accordingly the funding mechanism has yet to be defined.

Slovenia

Figure 36: Slovenia

Slovenia (AKOS) introduced a broadband USO in 2018 of 4 Mbit/s (4 Mbit/s download and 512 kbit/s upload). AKOS used the evaluation criteria outlined above conducting both demand and supply side analysis. The demand side analysis was based on the bandwidth and capacity needed to use a number of services in conjunction with an end-users needs survey (e.g. monthly household expenditure on ECS services; household demand for higher internet access speeds including e-content). The supply side analysis was based on operator provided data (e.g. fixed broadband access coverage and mobile data coverage at base station level). AKOS evaluated other speeds but selected 4 Mbit/s to provide the appropriate balance between end-users and providers.

AKOS also was guided on the practical application of Article 4 of the USD (“substantial majority of the population”) by a COCOM working paper and assessed the prevailing technologies used by the majority of subscribers. The only AKOS refinement is the exclusion of speeds above the data rate used by 80% of the households with a broadband connection. AKOS collects quarterly data from all operators (via questionnaires), and this information is used to calculate the take-up ratio. Once the 80% threshold is triggered AKOS is legally obliged to conduct an impact analysis including the potential costs associated with any proposed change to the download speed. This analysis is subject to a public consultation process.

A list of online services was developed based on social and digital inclusion which closely matches Annex V of Directive (EU) 2018/1972, save for the following categories: ‘basic training and education online tools’; and ‘other(s)’. AKOS did not develop a model to estimate the connectivity levels (in Mbit/s) needed to deliver this list of online services (as the bandwidth requires for each service was available from existing data).

The broadband USO only applies to primary residential premises, where there is no capped cost per premise (economical aspect for technologically neutral solution), and is not confined to a specifically identified group. End-users with disabilities or low income are entitled to additional measures (e.g. lower prices for special equipment or lower priced services 50% discount on the connection and ongoing rental fees).[75] AKOS issued a broadband USO call to tender to all operators. As no appropriate tender was received, AKOS has designated the incumbent (Telekom Slovenija) as the broadband USP at a national level for a period of 5 years. The current designation is exceptionally only for three years, otherwise it is a 5 year designation period.

AKOS monitors broadband QoS as part of the general legislation on quality of universal service, which stipulates the same quality of service for the broadband USO as that provided for commercially services, so as to ensure that digital exclusion does not occur. This also applies to latency and packet loss (in the case of broadband access via satellite there is a minimum data cap of 20 GB per month).

AKOS monitors broadband USO compliance based on an annual USP provided report. In the case of end-user complaints AKOS has the capability to introduce ad-hoc and or additional monitoring. Where applicable, the broadband USO is currently funded by industry funds.

Spain

The Sustainable Economy Act 2/2011 states that (effective 2012) every citizen shall have access to the public communications network (PCN) to a functional internet access connection of 1 Mbit/s under a universal service obligation. This was endorsed by the legislature through the enactment of the General Telecommunications Act 9/2014. The Act (9/2014) enables the Government to update the broadband USO speed taking into account the competitive landscape and service widely used by end-users. To date there has been no further revision to the broadband speed.

It is worth mentioning that, by the time the Sustainable Economy draft bill was proposed by the Ministry (2009) only a handful of countries had established the obligation of providing broadband access as part of the Universal Service.

The criteria used for the definition of the bandwidth have not been made public. However, in 2009, the Ministry took a set of considerations into account during the process of public consultation in the frame of the revision of the mechanism for the designation of the Universal Service provider.

In the public consultation, the Ministry echoes the (by then) proposal for a Directive amending Directive 2002/22/EC on universal service and users’ rights relating to electronic communications networks and services, and acknowledges that it is for the Member States to define what is to be understood as a “functional” internet access, having regard to their national circumstances.

In this vein, the Ministry put forward in the consultation data concerning:

- Take-up of broadband accesses provided by fixed networks (42.45%) and the distribution of accesses by technologies.

- The estimated potential coverage of households by xDSL accesses, account taken of topological characteristics of the network, spectrum management considerations and availability of the necessary additional equipment.

- Total estimated broadband access coverage, including satellite technologies (99%)

- The average bandwidth of broadband accesses; 99.54% out of the 9.3 million accesses –both residential and by business clients – with nominal value equal or higher than 1 Mbit/s, and 86.47% with at least 2 Mbit/s.

- Pricing data; for connections under 2Mbps tariffs range from € 15.5 to € 36 per month, including the connection to the network and the internet access service).

- Technologies used for the provision of mobile broadband (1,280,152 using HSDPA), alongside total number of lines (1,359,534), up-take (2.9%) and coverage data (at least 85% for 3G technologies).

- Prospection on technology development in the Spanish market.

- Considerations regarding the requirements of the services that the access is meant to support. 1 Mbit/s is deemed sufficient to grant an adequate access to the most used applications run on the internet, with the exception of TV (for which a 2 Mbit/s connection –at least - would be necessary).

- Mentions the broadband coverage goals of a number of Member States, for which a 100% objective was set for these minimum connection speeds; in France at 512 kbit/s, in Germany and Finland at 1 Mbit/s and 2 Mbit/s in the United Kingdom.

Therefore, account taken of the time of adoption of the bill, it might be regarded as an ambitious but achievable goal.

The broadband universal service obligation covers both the availability of connection and its affordability. It applies to all premises and there is no capped cost per premise. The affordability measures apply to end-users with special social needs such as disabled and retired citizens. For the latter, affordability is measured using the criteria of IPREM (Spanish acronym for public indicator of multiple effect income), which is established by means of Ministerial Order.

Beside the special tariff plans described in the table above, Spain has complementary affordability measures, namely:

- possibility to choose the billing frequency as best fits their needs
- possibility to impede, by means of an easy process, incoming international calls and calls from premium rate services
- transparency obligations regarding accessibility measures
- measures for the adequate breakdown of concepts within the invoices
- possibility to phase the payment for the connection to the network.

The designation of the USP is based on an open tender process. If no suitable tenders are received the Ministry, by means of a Ministerial order, may designate a USP based on market power. A USP (Telefonica, the incumbent) is currently designated (2016) on a national basis. The current designation is for a period of 3 years (1 January 2017-31 December 2019).[76]

QoS targets have been set for the broadband USO as outlined above.[77] The only technical parameter specified was a download bitrate of 1 Mbit/s. No list of online services was developed based on social or digital inclusion.

The Secretary of State for the Digital Advancement, of the Ministry of Economy and Enterprise, oversees the compliance of the broadband USO through the reporting obligation of the USP and through on-site inspections of the Provincial Headquarters for Telecommunication Inspections. The Annual Plan for the Inspection of Telecommunications detail the activity of these units.[78]

The broadband USO is currently funded by industry.The cost of the US is funded by a plurality of operators, determined on a yearly basis by the CNMC, as mandated by Article 27 of the General Telecommunications Act.

The last resolution on this matter was issued in December 2018 for the 2015 fiscal year, where obligations to contribute to the National Fund for the Universal Service were imposed to 14 operators.

The funding mechanism was activated some years ago when, after the appropriate analysis, the CNMC acknowledged the unfair burden that the USO provider was bearing in assuming the payment of the USO net cost.

According to the General Telecommunications Act, the net cost of the USO shall be funded by those operators that obtain a gross annual operating income from the operation of networks or the provision of electronic communications services of more than €100 million. The figure may be updated or modified, but this is the applicable figure currently.

Sweden