Competition in Mobile Telecommunications in EU
description
Transcript of Competition in Mobile Telecommunications in EU
Competition in Mobile Telecommunications
in the European UnionPresenting Group 3: Artūrs LazdekalnsEva BrūnaIgors JeraševsGuntis DlohiSanita SamoškaVishal Verma
Mobile Telecomuications in the EU ...
1.... before June 30, 2007
2.... after June 30, 2007
3.... after July 30, 2012
4.... Market vs. Intervention
Presentation Outline
MOBILE TELECOMMUNICATIONS IN THE EU BEFORE JUNE 30, 2007
Artūrs Lazdekalns
Key industry trends
Intensification of information flow due to globalization
Poor price transparency for consumers Forming of alliances among mobile
telecommunications companies Protectionism policy in each EU state Poor EU regulation and legislation
Major transnational operators
Major operator aliances
High costs for infrastructure on national level – no sharing policy across the EU countries
Protective national level legislation – only few licenses
Bureaucracy in regard to conclusion of agreements between operators on roaming
Free competition obstacles
MOBILE TELECOMMUNICATIONS IN THE EU AFTER JUNE 30, 2007
Igors Jeraševs
EC believes: „telecommunication networks and services are the backbone of Europe’s information society”. 1
Therefore EU level regulation is needed in order to: strengthen consumer rights; give consumer more choice by reinforcing competition
between telecom operators; promoting investment in new infrastructure; reduce prices; improve price transparency.
Economic reasons for changes
1 European statistics web site, <http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Telecommunication_statistics#Further_Eurostat_information>, accessed September 30.
WINNERS
Consumers traveling in EU Businesses in EU EU economics – higher spending, basis for economic
growth
LOSERS Mobile operators Consumers on national level in some countries Consumers traveling to some non-EU countries
Winners and Losers
MOBILE TELECOMMUNICATIONS IN THE EU AFTER JULY 30, 2012
Guntis Dlohi
Planned price caps
Source: Memo 12/316 Digital Agenda: New price caps for mobile data roaming expected to save families over €200 each year and business travelers over €1000 http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/12/316
SMS/Data Services Price Caps
Competition on national levels and across EU will intensify
There will be some market players not able to hold on to low prices and leave the market
Possible specialization among market players (MNO, MVO, transnational-wholesalers)
How about non-EU operators? They market entry possibilities? (discussion)
Impact on competition
MOBILE TELECOMMUNICATIONS IN THE EU: MARKET VS. INTERVENTION
Vishal Verma
Yes, it was!
EU has been an artificial creation with a goal to foster economic connections between the member states
Intervention happens in other industries as well
Internally in EU price conditions are more transparent now
Less entry barriers for new better quality mobile telecommunications service providers for consumers
Was intervention justified?
Thank you for your attention!