competition in mobile telecommunications in eu

Competition in Mobile Telecommunications

in the European UnionPresenting Group 3: Artūrs LazdekalnsEva BrūnaIgors JeraševsGuntis DlohiSanita SamoškaVishal Verma

Mobile Telecomuications in the EU ...

1.... before June 30, 2007

2.... after June 30, 2007

3.... after July 30, 2012

4.... Market vs. Intervention

Presentation Outline

MOBILE TELECOMMUNICATIONS IN THE EU BEFORE JUNE 30, 2007

Artūrs Lazdekalns

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

Major transnational operators

Major operator aliances

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

Free competition obstacles

MOBILE TELECOMMUNICATIONS IN THE EU AFTER JUNE 30, 2007

Igors Jeraševs

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.

Economic reasons for changes

1 European statistics web site, <http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Telecommunication_statistics#Further_Eurostat_information>, accessed September 30.

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

Winners and Losers

MOBILE TELECOMMUNICATIONS IN THE EU AFTER JULY 30, 2012

Guntis Dlohi

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

SMS/Data Services Price Caps

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)

Impact on competition

MOBILE TELECOMMUNICATIONS IN THE EU: MARKET VS. INTERVENTION

Vishal Verma

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

Was intervention justified?

Thank you for your attention!