MPTC Encourages Open Wholesale Access to Submarine Cable Capacity

Following the 2023 framework on submarine cable landing stations, the Cambodian authorities issued in 2024 a further set of measures focused specifically on wholesale access to submarine cable capacity and to the associated backhaul and interconnection arrangements. The measures aim to ensure that Cambodian and foreign operators, internet service providers, cloud providers and enterprise customers can obtain access to international connectivity on transparent, reasonable and non-discriminatory terms.

The measures are relevant to landing station operators, cable consortium members, wholesale carriers, retail internet service providers and large enterprise buyers of international connectivity.

The measures reinforce the principle that access to submarine cable capacity terminating in Cambodia should be offered on transparent, non-discriminatory and reasonable terms. Landing station operators and, where relevant, cable consortium members with control over Cambodian capacity are expected to publish or make available on request the terms under which capacity can be purchased, including pricing structures, contractual duration options, service level commitments and technical specifications.

The measures do not seek to disturb existing consortium arrangements or indefeasible rights of use, but they do require that the treatment of Cambodian counterparties be consistent with the objectives of a competitive market for international connectivity. Discriminatory practices that favour affiliated retail operators without objective justification are treated as a concern.

International capacity is only useful to Cambodian customers if it can be transported from the landing station to the location where the customer wishes to use it. The measures address the terms of backhaul from landing stations to major interconnection points and metropolitan areas, expecting that such backhaul be offered by qualified operators on commercially reasonable terms and that shortages or bottlenecks be addressed through further investment or through targeted regulatory intervention where necessary.

Coordination between landing station operators, backhaul providers and internet exchange points is encouraged, so that Cambodian traffic can be exchanged efficiently within the country and connected to international routes through the most appropriate combination of cable systems.

The measures encourage transparent pricing for wholesale submarine cable access, including standard prices for typical volumes and durations, clear disclosure of any additional charges for co-location, cross-connection and installation, and predictable arrangements for renewal. Landing station operators are expected to be able to explain the basis for pricing decisions and to justify differences between customers where these arise.

The regulator may benchmark wholesale prices against comparable markets in the region, may request cost information where appropriate and may intervene where pricing appears inconsistent with the objectives of the framework. Excessive pricing that exploits a bottleneck position, and unusually low pricing designed to disadvantage competitors, are both matters that may attract scrutiny.

Wholesale submarine cable access is a critical input to a range of downstream services, from consumer broadband to enterprise applications and cloud services. The measures expect landing station operators and cable consortium members to offer meaningful service level commitments, to invest in resilience against faults and to cooperate with each other and with backhaul providers to reduce the impact of incidents affecting individual cables or landing stations.

Customers are entitled to information about the diversity of the routes available to them, about the arrangements for restoration in the event of a fault and about the maintenance schedules that may affect capacity. Enterprises with critical dependencies on international connectivity should design their arrangements with awareness of these factors.

The measures aim to encourage new investment in landing stations, cable systems and backhaul infrastructure by providing a stable and predictable framework for wholesale access. New entrants that invest in additional Cambodian landing stations, in independent backhaul routes or in complementary infrastructure should be able to compete on the basis of the quality and price of their offerings.

The framework recognises that investment decisions depend on more than regulatory arrangements alone, including on the availability of suitable landing sites, on demand from anchor customers and on the wider macroeconomic environment. It nevertheless aims to remove regulatory uncertainty as a barrier and to provide a level playing field for investors.

The measures provide for structured dispute resolution between landing station operators, cable consortium members, backhaul providers and their customers. Bilateral negotiation is expected to be the first step, with escalation to the regulator available where negotiation fails. The regulator may consider technical, commercial and pricing issues and may issue binding decisions where necessary to resolve disputes and preserve access to essential wholesale services.

Interim arrangements should be maintained during disputes to preserve service continuity, particularly where the dispute affects retail customers that are not parties to the underlying commercial arrangement.

For retail internet service providers and cloud providers, the measures provide a stronger basis for obtaining international capacity on terms that support competitive retail offerings. Effective use of the framework requires clarity on the customer's own demand profile, engagement with multiple potential suppliers and readiness to escalate to the regulator when negotiations do not produce reasonable outcomes.

For enterprise customers with significant international connectivity needs, the measures create opportunities to purchase capacity more directly, to negotiate service level arrangements aligned with business requirements and to design resilient architectures that draw on capacity from multiple cables and landing stations.

For landing station operators and cable consortium members, the measures call for review of wholesale offers, of internal pricing methodologies and of governance arrangements between the operator and any affiliated retail operator. Reference terms, service level commitments and dispute resolution processes should be documented and kept current, so that engagement with customers and with the regulator is efficient and constructive.

For backhaul providers, the measures reinforce the value of investment in diverse routes, of clear commercial offers and of cooperation with landing station operators to provide integrated solutions to customers. Coordination on interconnection at major exchange points and on the design of resilient architectures supports both customer requirements and the wider objectives of the framework.

Lex Civora advises landing station operators, cable consortium members, backhaul providers, retail providers and enterprise customers on the interpretation and application of the wholesale submarine cable measures, on the negotiation of commercial arrangements, on the resolution of disputes and on strategic planning for international connectivity in Cambodia.