Competition In International Markets Vince Affleck Friday 12 November 1999.

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Presentation transcript:

Competition In International Markets Vince Affleck Friday 12 November 1999

Relevant Markets International retail services (Retail IDD) – Business – Residential International services to other operators (wholesale IDD) International private leased circuits (IPLCs)

Routes considered Retail IDD (23):EU/EFTA:AustriaGreeceNorway BelgiumIrelandPortugal DenmarkItalySpain FinlandLuxembergSweden FranceNetherlandsSwitzerland Germany WTO:AustrailiaIsraelSingapore CanadaJapanUSA Hongkong Wholesale IDD (26):Same as retail plusMalyasia New Zealand South Africa IPLCs (22):Same as retail minusIsrael

Considerations Competition Analysis – Market Share and Trends in market share – Number of Competitors – Barriers to entry – Countervailing power of buyers – Entry to and exit from market – Evidence of collusion or price leadership – Profitability Legal Framework – BT’s Licence – SMP status

Operators’ Initial Comments Impact of BT/AT & T Joint Venture Flexibility under ONP Directives Route-by-route analysis Liberation at foreign - end of route Relationship between wholesale and retail markets Cable station access Cross- subsidy between inboud and outbound traffic

Findings Retail IDD -Business market: All 23 Routes effectively competitive -Residential market: All 23 routes increasingly competitive Wholesale IDD-All 26 routes effectively competitive IPLCs -All 22 routes increasingly competitive

Proposals (1) Reduction of BT’s price publication notice period from 28 days to one day for 23 retail IDD routes and 22 IPLC routes BT need no longer provide OFTEL with breakdown of costs for changes to retail IDD prices on 23 routes prior to publication of those prices BT need no longer seek DG’s consent to below -cost prices on 23 retail IDD routes

Proposals (2) 26 wholesale IDD routes determined as Competitive Standard Services  BT can offer charges outside NCCN ceiling control Reduction of BT’s network charge publication notice period from 28 days to one day for all Competitive Standard Services (inc. 26 Wholesale IDD Routes). Increased flexibility in interpretation of undue discrimination/ undue preference

Consultation Comments - Wednesday 8 December 1999 Comments on comments - Wednesday 22 December 1999 Comments to: Jim Ford 50 Ludgate Hill London EC4M 7JJ Tel: Fax: