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New Framework - Procedures

This document outlines the challenges faced by the mobile sector in the European Union from the perspective of the European Commission. It details the implementation of the new regulatory framework, focusing on market definition, analysis, and the obligations of significant market players (SMP). Key aspects include competition effectiveness, market characteristics, obligations on transparency, non-discrimination, access, pricing, and number portability. The framework aims to ensure effective competition while balancing regulatory efforts with the market's needs.

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New Framework - Procedures

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  1. The Challenges for the Mobile SectorThe European Commission’s perspectivePearse O’DonohueEuropean Commission DG INFSOImplementation of the Regulatory Framework

  2. 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

  3. 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

  4. New Framework - guidance

  5. 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

  6. 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...

  7. 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 27

  8. 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

  9. 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

  10. Transposition - Timeline 25.7.2003 Date of application in all MS 24.4.2002 Entry into force 15 months M States transpose, but don’t apply NRAs do market analyses

  11. 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

  12. 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

  13. 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)

  14. 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

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

  16. 3G • Delays in roll-out • Equipment and services • License sunk costs • Developments in WiFi / RLAN • Intermediate market / 2.5G • Coordinated measures at EU level

  17. 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

  18. DG Information Society:http://europa.eu.int/information_society/topics/telecoms/index_en.htm Pearse O’DonohueEuropean Commission DG INFSOImplementation of the Regulatory Framework

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