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New Framework - Procedures

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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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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