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Competition in Mobile Telecommunications in EU
1. Competition in Mobile
Telecommunications
in the European Union
Presenting Group 3:
Artūrs Lazdekalns
Eva Brūna
Igors Jeraševs
Guntis Dlohi
Sanita Samoška
Vishal Verma
4. Key industry trends
Intensification of information flow due to
globalization
Poor price transparency for consumers
Forming of alliances among mobile
telecommunications companies
Protectionism policy in each EU state
Poor EU regulation and legislation
7. Free competition obstacles
High costs for infrastructure on national
level – no sharing policy across the EU
countries
Protective national level legislation – only
few licenses
Bureaucracy in regard to conclusion of
agreements between operators on roaming
9. Economic reasons for changes
EC believes: „telecommunication networks and services are
the backbone of Europe’s information society”. 1
Therefore EU level regulation is needed in order to:
strengthen consumer rights;
give consumer more choice by reinforcing competition
between telecom operators;
promoting investment in new infrastructure;
reduce prices;
improve price transparency.
1
European statistics web site, <
http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Telecommunication_statistics#Further_Eurostat_information>,
accessed September 30.
10. Winners and Losers
WINNERS
Consumers traveling in EU
Businesses in EU
EU economics – higher spending, basis for
economic growth
LOSERS
Mobile operators
Consumers on national level in some countries
Consumers traveling to some non-EU countries
12. SMS/Data Services Price Caps
Planned price caps
Source: Memo 12/316 Digital Agenda: New price caps for mobile data roaming expected to save families
over €200 each year and business travelers over €1000
http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/12/316
13. Impact on competition
Competition on national levels and across EU will
intensify
There will be some market players not able to
hold on to low prices and leave the market
Possible specialization among market players
(MNO, MVO, transnational-wholesalers)
How about non-EU operators? They market entry
possibilities? (discussion)
15. Was intervention justified?
Yes, it was!
EU has been an artificial creation with a goal to
foster economic connections between the member
states
Intervention happens in other industries as well
Internally in EU price conditions are more
transparent now
Less entry barriers for new better quality mobile
telecommunications service providers for consumers