Neven Dilkov: Bulgarian regulator must restore the telecom market balance

Although CRC claims to take measures in the interest of consumers, the quality of services deteriorates, prices rise

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The Branch Association of Bulgarian Telecommunications Operators (BABTO), of which Neterra is a member, has asked the Bulgarian Communications Regulatory Commission (CRC) to bind mobile operators' licenses for new 5G frequencies with an obligation for them to open their networks for alternative operators, said Neven Dilkov, CEO of Neterra, during a conference in Split, Croatia (4-5 April 2023) organized by RIPE.

RIPE is the organization that registers and provides global Internet resources and related services (IPv4, IPv6 and AS number resources).

BABTO's position, which Neven promoted, comes after a recent decision of the Bulgarian government to reduce by 40% the fees for which the three mobile operators will receive new frequencies in the 700 and 800 MHz spectrum for the development of 5G.

Neven shared the concerns of his colleagues from Romania, Serbia, Croatia and other Southeast European countries that the consolidation in the telecommunications industry in recent years is worsening competition.

He gave an example of the Bulgarian regulator CRC that claims to take measures in the interest of consumers, but they have the opposite effect - the quality of services deteriorates, and prices rise.

Neven emphasized that the Bulgarian market is too small. It would not be effective for companies that want to create new mobile operators to build another telecom infrastructure parallel to three mobile operators. Instead, they may use the capacity of existing networks. This is the recommendation of the European Commission and the practice throughout Europe.

In every European country, except for Bulgaria, there are mobile operators who do not work on their own networks but hire from other companies - so-called Virtual Mobile Operators (MVNOs).

In Bulgaria, however, the three mobile operators do not allow other companies to access their networks. If CRC obliges them, it will improve competition in the Bulgarian telecom market and protect small and medium-sized operators from the threat of the state once again putting them at a disadvantage position compared to the three largest operators.

In March 2023, the Supreme Administrative Court (SAC) announced that CRC had illegally launched a tender for other key frequencies for 5G - those around 3.6 GHz. If this tender is restarted, it will also allow the new procedure to stipulate mobile operators open their networks to alternative providers.