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Effective competition review

OFTEL initiates a comprehensive review of the mobile market starting September 2000 to evaluate effective competition. This review, grounded in regulatory principles, aims to ensure consumers benefit from high-quality services, competitive prices, and innovative offerings. Through meetings with consumer and industry groups, OFTEL seeks to gather input and data to analyze current market conditions. Assessments will include market structure, supplier behavior, and consumer outcomes to determine if existing regulations are appropriate and effectively promoting competition.

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Effective competition review

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  1. Effective competition review Mobile market

  2. 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

  3. 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

  4. 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

  5. Timetable

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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

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