Erkki Liikanen - Date 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 -Consultation: nationally, other M/S NRAs & Commission -Possible Commission veto

Different stages of the analysis Relevant Markets - Commission Recommendation product aspect of the market NRA analysis is competition effective ? dominance test/SMP designation NRA designates SMP operator(s) - maintains or modifies existing obligations, or imposes new obligations NRA removes existing obligations - does not impose new obligations NRA input Commission Guidelines competition is effective competition not effective NRA Market definition taking account of the Commission Recommendation define geographical aspects define other product markets, following Art 7 FWD

New Framework - guidance

SMP/Dominance Assessment Single: Single: Evolution of market shares Potential competition and barriers to entry Control of essential facilities Joint dominance: Joint dominance: “oligopolistic markets the structure of which was considered conductive to coordinated effects” Market characteristics: concentration, transparency, retaliatory mechanisms. Leveraging Leveraging

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 Leveraging 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 Prices at an excessively high level or price squeezes price control accounting separation and cost- accounting 27

Appeals on NRA decisions National legal systems must allow for appeals on NRA decisions National legal systems must allow for appeals on NRA decisions Appeal body may be a court or tribunal Appeal body may be a court or tribunal Merits of the case must be taken into account Merits of the case must be taken into account

Dispute resolution National level National level resolve in 4 months refer to alternative dispute resolution mechanisms results must be in conformity with the framework Cross-border Cross-border co-ordination of NRAs concerned to resolve in 4 months

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

NRAs - data gathering Market analysis key aspect of new framework Market analysis key aspect of new framework need for comprehensive and accurate overview of markets need for comprehensive and accurate overview of markets interest and obligation of market players interest and obligation of market players consultation mechanisms consultation mechanisms possibility of streamlining once systems in place possibility of streamlining once systems in place

Mobile Markets Access and call origination on public mobile telephone networks Access and call origination on public mobile telephone networks Voice call termination on individual mobile networks Voice call termination on individual mobile networks The wholesale national market for international roaming on public mobile networks The wholesale national market for international roaming on public mobile networks

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)

Number Portability Mobile number portability must be available under new framework Mobile number portability must be available under new framework Pricing for interconnection related to portability to be cost oriented Pricing for interconnection related to portability to be cost oriented Charges to subscribers should not act as a disincentive Charges to subscribers should not act as a disincentive No imposition of retail tariffs that would distort competition No imposition of retail tariffs that would distort competition

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

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

Radio Spectrum Allocation & assignment based on transparent, objective, non- discriminatory & proportionate criteria Allocation & assignment based on transparent, objective, non- discriminatory & proportionate criteria Auctions & beauty contests permitted Auctions & beauty contests permitted Spectrum trading an option for Member States Spectrum trading an option for Member States two conditions: no distortion of competition no threat to harmonisation

DG Information Society: /topics/telecoms/index_en.htm Pearse O’Donohue European Commission DG INFSO Implementation of the Regulatory Framework