The document summarizes the introduction of a new wholesale product called "virtual unbundling" (VULL) in NGA networks in Austria. VULL is intended to promote investment and competition in next generation access networks by allowing alternative operators access to active layer 2 services over fiber networks currently owned by the incumbent operator. The key aspects of the VULL reference offer are described, including technical implementation using VLAN tagging, quality of service prioritization, pricing methodology, and potential to replace traditional copper-based unbundling remedies over time.

1. Virtual Unbundling A new wholesale product in NGA networks Kurt Reichinger Austrian Regulatory Authority for Telecommunications and Broadcasting The opinions expressed in this presentation are the personal view of the author and do not prejudge decisions of the Austrian regulatory authorities.

3. The Austrian Unbundling Market

5. Market Analysis - Indicators analysed Indicator Interpretation Market share Incumbent: near 100% Barriers to entry High „sunk cost“ Control over not easily replicable infrastructure A1 Telekom: largest access network, can offer access services nationwide Countervailing buyer power Not existing as incumbent is sole supplier No self-supply for OLOs due to high barriers to entry vertical integration Leveraging from LLU market to neighbour markets (Retail PSTN access, BB market) natural monopoly Duplication of access network not economically feasible Overview

6. Market Analysis – Obligations imposed Overview … … Obligation Content Access (with cost oriented pricing) LLU, SLU, v-ULL (virtual unbundling) Annex-Services Access to Duct & Dark Fibre, Collocation [email_address] VDSL@CO and VDSL@ARU - Deployment permitted NGA Regulation Compensation for frustrated investments, coordination meetings, … Reference Offers General rules, v-ULL, Access to Duct & Dark Fibre Transparency OLO can request relevant information for planning of own FTTC/B-deployments

16. Virtual Unbundling

18. Technical Concept of VULL Reference Offer Bandwidth (HP/LP) Netz ANB CPE CPE CPE CPE Bandbreite Bandbreite Bandwidth Bandbreite DSLAM Bandbreite Bandbreite Bandwidth Bandwidth Bandwidth Network OLO POI Overview

22. VLAN Concept (2/2)

25. Defined Service Parameters for VULL

28. CPE – DSLAM: bandwidth and monthly fees

29. DSLAM – PoI: Bandwidth profiles and monthly fees Price comparison: Full LLU: € 5,87 per month

31. Final Considerations

33. Virtual Unbundling A new remedy in NGA networks Kurt Reichinger Austrian Regulatory Authority for Telecommunications and Broadcasting The opinions expressed in this presentation are the personal view of the author and do not prejudge decisions of the Austrian regulatory authorities.