Post on 11-Jan-2016
description
The Challenges for the Mobile Sector
The European Commission’s perspective
Pearse O’DonohueEuropean Commission DG INFSO
Implementation of the Regulatory Framework
The Challenges for the Mobile Sector
The European Commission’s perspective
Pearse O’DonohueEuropean Commission DG INFSO
Implementation of the Regulatory Framework
New Framework - ProceduresNew Framework - Procedures
1. Market definition1. Market definition
2. Market Analysis2. Market Analysis
3. Designation of SMP3. Designation of SMP
4. Obligations4. Obligations
-- Consultation: nationally, other M/S Consultation: nationally, other M/S NRAs & CommissionNRAs & Commission
-- Possible Commission vetoPossible Commission veto
Different stages of the analysis
Different stages of the analysis
Relevant Markets - Commission Recommendation
product aspect of the market
NRA analysis
is competition effective ?
dominance test/SMP designation
NRA designates SMP operator(s) -
maintains or modifies existing obligations, or
imposes new obligations
NRA removes existing obligations -
does not impose new obligations
NRA input
Commission Guidelines
competition is effective
competition not effective
NRA Market definition
taking account of the Commission Recommendation
define geographical aspects
define other product markets, following Art 7 FWD
New Framework - guidanceNew Framework - guidance
Definition andIdentification of
the Markets
SMPAssessment
Choice ofobligations
CommissionRecommendation
on RelevantMarkets
CommissionGuidelines on
Marketanalysis and
SMPassessment
CommissionRecommendation
on Remedies
SMP/Dominance AssessmentSMP/Dominance Assessment
• Single:Single:
• Evolution of market shares
• Potential competition and barriers to entry
• Control of essential facilities
• Joint dominance:Joint dominance:
• “oligopolistic markets the structure of which was considered conductive to coordinated effects”
• Market characteristics: concentration, transparency, retaliatory mechanisms.
• LeveragingLeveraging
Obligations / RemediesObligations / Remedies
• Transparency
• Non-discrimination
• Accounting Separation
• Access to, and use of, specific network facilities
• Price control and cost accounting - cost orientation
• Other access obligations...
Obligations to be proportionate and based on the problem
found
Obligations to be proportionate and based on the problem
found
• Leveraging Leveraging • transparency• non-discrimination and accounting
separation• access to, and use of, specific network
elements and associated facilities
• Prices at an excessively high level Prices at an excessively high level or price squeezes or price squeezes• price control• accounting separation and cost-
accounting
27
Appeals on NRA decisions
• National legal systems must allow National legal systems must allow for appeals on NRA decisionsfor appeals on NRA decisions
• Appeal body may be a court or Appeal body may be a court or tribunaltribunal
• Merits of the case must be taken into Merits of the case must be taken into accountaccount
Dispute resolutionDispute resolution
• National levelNational level• resolve in 4 months
• refer to alternative dispute resolution mechanisms
• results must be in conformity with the framework
• Cross-borderCross-border• co-ordination of NRAs concerned to resolve
in 4 months
Transposition - TimelineTransposition - Timeline
24.4.2002
Entry into force
25.7.2003
Date of application in all MS
M States transpose, but don’t apply
NRAs do market analyses
15 months
NRAs - data gatheringNRAs - data gathering
• Market analysis key aspect of new Market analysis key aspect of new frameworkframework
• need for comprehensive and need for comprehensive and accurate overview of marketsaccurate overview of markets
• interest and obligation of market interest and obligation of market playersplayers
• consultation mechanismsconsultation mechanisms
• possibility of streamlining once possibility of streamlining once systems in placesystems in place
Mobile MarketsMobile Markets
• Access and call origination on public Access and call origination on public
mobile telephone networksmobile telephone networks
• Voice call termination on individual Voice call termination on individual
mobile networksmobile networks
• The wholesale national market for The wholesale national market for
international roaming on public international roaming on public
mobile networksmobile networks
MVNOsMVNOs
NRAs may impose obligations to meet reasonable NRAs may impose obligations to meet reasonable requests for access, including requests for access, including inter alia:inter alia:
- resale- resale- intelligent network services- intelligent network services- roaming- roaming
Obligations must be proportionateObligations must be proportionate
Effect on competition (short term) and investment Effect on competition (short term) and investment (long term)(long term)
Number PortabilityNumber Portability
• Mobile number portability must be Mobile number portability must be available under new frameworkavailable under new framework
• Pricing for interconnection related to Pricing for interconnection related to portability to be cost orientedportability to be cost oriented
• Charges to subscribers should not Charges to subscribers should not act as a disincentiveact as a disincentive
• No imposition of retail tariffs that No imposition of retail tariffs that would distort competitionwould distort competition
RoamingRoaming
• Wholesale national market for Wholesale national market for
international roaming targetedinternational roaming targeted
• Evidence of excessive chargesEvidence of excessive charges
• DG COMP sectoral enquiry and DG COMP sectoral enquiry and
specific investigationsspecific investigations
• Introduction of local/national Introduction of local/national
roamingroaming
3G3G
• Delays in roll-outDelays in roll-out
• Equipment and servicesEquipment and services
• License sunk costsLicense sunk costs
• Developments in WiFi / RLANDevelopments in WiFi / RLAN
• Intermediate market / 2.5GIntermediate market / 2.5G
• Coordinated measures at EU levelCoordinated measures at EU level
Radio SpectrumRadio Spectrum
• Allocation & assignment based on Allocation & assignment based on transparent, objective, non-transparent, objective, non-discriminatory & proportionate discriminatory & proportionate criteriacriteria
• Auctions & beauty contests permittedAuctions & beauty contests permitted
• Spectrum trading an option for Spectrum trading an option for Member StatesMember States
two conditions:
• no distortion of competition
• no threat to harmonisation
DG Information Society:DG Information Society:http://europa.eu.int/information_society/thttp://europa.eu.int/information_society/t
opics/telecoms/index_en.htmopics/telecoms/index_en.htm
Pearse O’DonohuePearse O’DonohueEuropean Commission DG INFSOEuropean Commission DG INFSO
Implementation of the Regulatory FrameworkImplementation of the Regulatory Framework