The Challenges for the Mobile Sector The European Commission

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The Challenges for the Mobile SectorThe
European Commissions perspectivePearse
ODonohueEuropean Commission DG
INFSOImplementation of the Regulatory Framework
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New Framework - Procedures

• 1. Market definition
• 2. Market Analysis
• 3. Designation of SMP
• 4. Obligations
• - Consultation nationally, other M/S NRAs
  Commission
• - Possible Commission veto

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Different stages of the analysis

• Relevant Markets - Commission Recommendation
• product aspect of the market

NRA input
Commission Guidelines
NRA Market definition taking account of the
Commission Recommendation define geographical
aspects define other product markets, following
Art 7 FWD
NRA removes existing obligations - does not
impose new obligations
competition is effective
NRA analysis is competition effective ? dominance
test/SMP designation
NRA designates SMP operator(s) - maintains or
modifies existing obligations, or imposes new
obligations
competition not effective
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New Framework - guidance
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SMP/Dominance Assessment

• Single
• Evolution of market shares
• Potential competition and barriers to entry
• Control of essential facilities
• Joint dominance
• oligopolistic markets the structure of which was
  considered conductive to coordinated effects
• Market characteristics concentration,
  transparency, retaliatory mechanisms.
• Leveraging

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Obligations / Remedies

• Transparency
• Non-discrimination
• Accounting Separation
• Access to, and use of, specific network
  facilities
• Price control and cost accounting - cost
  orientation
• Other access obligations...

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Obligations to be proportionate and based on the
problem found

• Leveraging
• transparency
• non-discrimination and accounting separation
• access to, and use of, specific network elements
  and associated facilities
• Prices at an excessively high level
  or price squeezes
• price control
• accounting separation and cost- accounting

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Appeals on NRA decisions

• National legal systems must allow for appeals on
  NRA decisions
• Appeal body may be a court or tribunal
• Merits of the case must be taken into account

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Dispute resolution

• National level
• resolve in 4 months
• refer to alternative dispute resolution
  mechanisms
• results must be in conformity with the framework
• Cross-border
• co-ordination of NRAs concerned to resolve in 4
  months

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Transposition - Timeline
25.7.2003 Date of application in all MS
24.4.2002 Entry into force
15 months
M States transpose, but dont apply NRAs do
market analyses
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NRAs - data gathering

• Market analysis key aspect of new framework
• need for comprehensive and accurate overview of
  markets
• interest and obligation of market players
• consultation mechanisms
• possibility of streamlining once systems in place

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Mobile Markets

• Access and call origination on public mobile
  telephone networks
• Voice call termination on individual mobile
  networks
• The wholesale national market for international
  roaming on public mobile networks

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MVNOs

• NRAs may impose obligations to meet reasonable
  requests for access, including inter alia -
  resale - intelligent network services - roaming
• Obligations must be proportionate
• Effect on competition (short term) and investment
  (long term)

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Number Portability

• Mobile number portability must be available under
  new framework
• Pricing for interconnection related to
  portability to be cost oriented
• Charges to subscribers should not act as a
  disincentive
• No imposition of retail tariffs that would
  distort competition

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Roaming

• Wholesale national market for international
  roaming targeted
• Evidence of excessive charges
• DG COMP sectoral enquiry and specific
  investigations
• Introduction of local/national roaming

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3G

• Delays in roll-out
• Equipment and services
• License sunk costs
• Developments in WiFi / RLAN
• Intermediate market / 2.5G
• Coordinated measures at EU level

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Radio Spectrum

• Allocation assignment based on transparent,
  objective, non-discriminatory proportionate
  criteria
• Auctions beauty contests permitted
• Spectrum trading an option for Member States
• two conditions
• no distortion of competition
• no threat to harmonisation

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• DG Information Societyhttp//europa.eu.int/infor
  mation_society/topics/telecoms/index_en.htm
• Pearse ODonohueEuropean Commission DG
  INFSOImplementation of the Regulatory Framework