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The Challenges for the Mobile Sector The European Commission’s perspective Pearse O’Donohue European Commission DG INFSO Implementation of the Regulatory Framework. New Framework - Procedures. 1. Market definition 2. Market Analysis 3. Designation of SMP 4. Obligations

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The Challenges for the Mobile SectorThe European Commission’s perspectivePearse O’DonohueEuropean Commission DG INFSOImplementation of the Regulatory Framework
new framework procedures
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

different stages of the analysis
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

smp dominance assessment
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
obligations remedies
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...
obligations to be proportionate and based on the problem found
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


appeals on nra decisions
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
dispute resolution
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
transposition timeline
Transposition - Timeline


Date of application in all MS


Entry into force

15 months

M States transpose, but don’t apply

NRAs do market analyses

nras data gathering
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
mobile markets
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

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)

number portability
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
  • Wholesale national market for international roaming targeted
  • Evidence of excessive charges
  • DG COMP sectoral enquiry and specific investigations
  • Introduction of local/national roaming
  • Delays in roll-out
  • Equipment and services
  • License sunk costs
  • Developments in WiFi / RLAN
  • Intermediate market / 2.5G
  • Coordinated measures at EU level
radio spectrum
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
DG Information Society:

Pearse O’DonohueEuropean Commission DG INFSOImplementation of the Regulatory Framework