Competition in Mobile Telecommunications in EU
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Competition in Mobile Telecommunications in EU

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    Competition in Mobile Telecommunications in EU Competition in Mobile Telecommunications in EU Presentation Transcript

    • Competition in Mobile Telecommunications in the European UnionPresenting Group 3:Artūrs LazdekalnsEva BrūnaIgors JeraševsGuntis DlohiSanita SamoškaVishal Verma
    • Presentation OutlineMobile Telecomuications in the EU ...1.... before June 30, 20072.... after June 30, 20073.... after July 30, 20124.... Market vs. Intervention
    • Artūrs LazdekalnsMOBILE TELECOMMUNICATIONSIN THE EU BEFORE JUNE 30, 2007
    • 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
    • Free competition obstaclesHigh costs for infrastructure on nationallevel – no sharing policy across the EUcountriesProtective national level legislation – onlyfew licensesBureaucracy in regard to conclusion ofagreements between operators on roaming
    • Igors JeraševsMOBILE TELECOMMUNICATIONSIN THE EU AFTER JUNE 30, 2007
    • 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.
    • Winners and LosersWINNERS Consumers traveling in EU Businesses in EU EU economics – higher spending, basis for economic growthLOSERS Mobile operators Consumers on national level in some countries Consumers traveling to some non-EU countries
    • Guntis DlohiMOBILE TELECOMMUNICATIONSIN THE EU AFTER JULY 30, 2012
    • SMS/Data Services Price CapsPlanned price capsSource: Memo 12/316 Digital Agenda: New price caps for mobile data roaming expected to save familiesover €200 each year and business travelers over €1000http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/12/316
    • Impact on competitionCompetition on national levels and across EU willintensifyThere will be some market players not able tohold on to low prices and leave the marketPossible specialization among market players(MNO, MVO, transnational-wholesalers)How about non-EU operators? They market entrypossibilities? (discussion)
    • Vishal VermaMOBILE TELECOMMUNICATIONS INTHE EU: MARKET VS. INTERVENTION
    • Was intervention justified?Yes, it was!EU has been an artificial creation with a goal tofoster economic connections between the memberstatesIntervention happens in other industries as wellInternally in EU price conditions are moretransparent nowLess entry barriers for new better quality mobiletelecommunications service providers for consumers
    • Thank you for your attention!