Effective competition review

Mobile market

Effective competition reviews

OFTEL’s strategy set out regulatory principles

• designed to ensure the the level of regulation is proportionate to the state of competition in different telecoms markets

OFTEL needs to measure effective competition in various markets

• this will be done through the effective competition reviews

The mobile market review kicks off in September 2000

The broad market segment is mobile services covered by the mobile PTO licence

In advance of the formal launch• meetings with consumer groups and industry• early opportunity to input into the scope of

the mobile review• OFTEL needs data and information from

consumer groups and industry

Mobile market review

Objectives:• To review the state of the mobile market and to assess

if OFTEL’s objective of “effective competition benefiting consumers” is being met

• In the light of the results of the review, assess if current regulation continues to be appropriate

Outcomes:• Effective competition exists

• The market is not yet effectively competitive but there is evidence that effective competition is developing

• The market is not effectively competitive

TimetableActivity MonthPRD to Ops Board 7 July 2000Start data collectionHold stakeholder meetings

July 2000

Prepare “kick-offstatement”

July, August 2000

Issue “kick-off statement” 1st September 2000Prepare consultationdocument

Sept, Oct, Nov 2000

Issue consultationdocument

End Nov 2000

2 - 3 month consultationperiod

Dec, Jan, Feb 2001

Prepare final statement March, April 2001Issue final statement May 2001

Outline of the project

Measure consumer benefits of competition in the mobile market

Carry out market reviews

Assess current regulation against the results of the competition review

Consult on proposals for continuing with, amending, or introducing new regulation

Support proposals for any new regulation with a cost benefit analysis

Measuring consumer benefits

A competitive market will deliver:– high quality of service, competitive prices,

innovative services and choice

Relevant measures of consumer outcomes:• International benchmarking

– of prices and availability of standard and innovative products

• Tracking UK prices over time – the mobile price index work

• Trends in average revenue per subscriber• QoS measures• Availability of information to consumers

Market analysis

Starting point: distinct retail and wholesale markets for:

• Voice and enhanced services

Indicators of effective competition divided into three groups:

• Market structure• Supplier behaviour• Consumer behaviour

Assess current regulation

UK specific regulation• Market Influence determinations and the

associated triggered licence conditions

European legislation • the SMP designation for mobile

operators under the ICD:

CAct

Propose action

Deregulatory measures

How self and co-regulatory initiatives can be used in the mobile market

Continuation of existing regulation

Increase in, or new, regulation

How OFTEL considers European legislation should apply to the UK mobile market

Comments to OFTEL

If you would like to comment on the scope of the mobile review, please contact the OFTEL team:

• Elaine Axby– Mobile policy project director

• Heather Clayton – Mobile market review manager

– heather.clayton@oftel.gov.uk– 020 7634 8979

• Michael Richardson– Service providers and mobile enhanced services

• Nic Green– Stakeholder management and mobile consumer outcomes

• Luca Di Mauro– Economic advisor