This is a short description related to Regulator policy, Framework delimitations, directed to people involved in policy making about Competition Policy in Digital Era.

1. COMPETITION POLICY IN THE
DIGITAL AGE
Regulator’s Overview
INDEX
1. INTRODUCTION
1. COMPETITON POLICY, A REGULATORY FRAME
1. DEFINING MARKET
1. MARKET POWER ASSESSMENT
1. DYNAMICS EFFICIENCIES
1. BOTTLENECK IN NETWORKS
1. REFERENCES

2. 1.INTRODUCTION
It this digital age, where telecom is evolving & converging
very fast, it is important to redefine some concepts related to
‘healthy’ competition markets, this have two meanings, one
referred to telecom operator and the second to customer
satisfaction.
The 1st, means that all operator in a region have to work
under the the same rules ‘relatively’, in order to promote
competitivity & good business practices.
The 2nd, means that customer have more choices to
get/receive better services at low costs.
COMPETITION POLICY IN THE
DIGITAL AGE
Regulator’s Overview

3. 2.COMPETITION POLICY, A REGULATORY FRAME
This is a set of policy, laws, rules/mandates established to
ensure that the telecom sector/market is not restricted in such
a way as to reduce economic welfare.
This have to be achieve by telecom regulators body or by
coordination between various gouvernemental bodies to
provide a healthy environmental market, for this Competions
Laws are (normally) aplied ‘Ex-Ante’ and Regulation aplied
‘Ex-Post’.
COMPETITION POLICY IN THE
DIGITAL AGE
Regulator’s Overview

4. 3.DEFINING MARKET
To provide a ‘Healthy’ competition Law it is necessary to
define Market for Products/services, relative to a defined
geography.
This is important to procede with Market Analysis, to determin
telecom operators participant and its rolle in the market like:
 Significan Market Power (operator)
 Dominant Position (Incumbent)(Cartel, Oligopoly, Monopoly)
 Merger (Yes or not to approval)
COMPETITION POLICY IN THE
DIGITAL AGE
Regulator’s Overview

5. 3.DEFINING MARKET
COMPETITION POLICY IN THE
DIGITAL AGE
Regulator’s Overview
For Defining Market, SSNIP test is a usefull tool (Small
but Signifacant Non-Transitory Increase in Prices).
This is usefull to determine ‘Abuse of Dominance’ and for
approving or blocking mergers & Relevant Market which
consist in a ‘List/Catalogue’ of products/Services
considered similars by the customers.
In this context is important to take account on ‘Bundling’
which can be used by dominant operator(s)

6. 3.DEFINING MARKETS
The following shows the considerations to account in Market Assessment.
COMPETITION POLICY IN THE
DIGITAL AGE
Regulator’s Overview
Image Credit: GSMA Capacity Building

7. 3.DEFINING MARKETS
This show weather or not is necessary to do an intervention when operators implement
bundling for their telecom servicies
COMPETITION POLICY IN THE
DIGITAL AGE
Regulator’s Overview
Image Credit: GSMA Capacity Building

8. 4.MARKET POWER ASSESSMENT
To achieve this is necessary to know the Telecomm Market
Efficiencies:
 Allocated Efficiency
 Operators produces/offers the optimal products/services for customer preferences

 Productive Efficiency
 Operators produces/offers the maximum products/services above the optimal case
to minimize costs
 Dynamic Efficiency
 Appropriate balance of Short Run Efficiency (often Labor) and Long Run
Efficiencies (Labor, Capital, Techonology, Land, RF & network Access/resources)
focused on promoting research, development & innovation ; Network Quality is
driven by this dynamic.
COMPETITION POLICY IN THE
DIGITAL AGE
Regulator’s Overview

9. 4.MARKETS POWER ASSESSMENT
Market Consolidation :
Revenue & margin pressure limit operators ability to invest &
innovate, that the main reason why operators look for
mergers.
In digital era merging have low turnover or revenue!!
And represent lightly price increase for customer in short term
but more efficiency on long term.
COMPETITION POLICY IN THE
DIGITAL AGE
Regulator’s Overview

10. 4.MARKETS POWER ASSESSMENT
Mergers:
 Leads to fixed costs savings
 Regulators and Competion bodies will only consider it they
lead to customer benefits (but not expected to do so).
 Theory suggest investment should fall (not in all cases).
COMPETITION POLICY IN THE
DIGITAL AGE
Regulator’s Overview
Image Credit: GSMA Capacity Building

11. 5.DYNAMICS EFFICIENCIES
This is the actual approach for Competition policy, in the
context of mergers.
COMPETITION POLICY IN THE
DIGITAL AGE
Regulator’s Overview
Efficiencies Description
Allocated Efficiency Operators offers optimal
amounts of products/services
for customers preferences
Productive Efficiency Operators offers maximum
amounts for
products/services for
minimizing costs
Dynamic Efficiency Appropriate balance for
short & long Run
efficiencies, focus on
research, develop &
Innovation
Image & Table Credit: GSMA Capacity Building

12. 5.DYNAMICS EFFICIENCIES
Mobile Mergers Vs Investment :
This do not implys lower investment as we can see for the
cases of UK and Austria
COMPETITION POLICY IN THE
DIGITAL AGE
Regulator’s Overview

13. 6. BOTTLENECK IN NETWORKS
Is a point of Network access that most be passed in order to
reach the customer.
COMPETITION POLICY IN THE
DIGITAL AGE
Regulator’s Overview
Bottleneck, Digital Era -Types Description
Access Network Required to reach customer
Spectrum Finite amount of spectrum availability, this limits the
use among operators/user
OTT Closed Accessible to those that are members of the service,
and without non directly related revenue for the
mobile operator
Proprietary App & OS Sometimes comes in bundled product
(device/OS/Apps) and limit greatly the option to
mobile switching

14. 6. BOTTLENECK IN NETWORKS
Traditional Telco bottleneck are becoming irrelevant, due to
its platform that was to provide fixed services, this services
only provide access to internet on specific location/sites, this
limitation promoted the development of mobile services, so
the bottleneck has “moved” to new platforms of Network
access.
New bottleneck are emerging on OTT´s player. OS platforms,
Social media networks, as well on new technologies depending on
its coberture/quality/spectrum.
COMPETITION POLICY IN THE
DIGITAL AGE
Regulator’s Overview

15. 7. REFERENCE
Competition Policy in the Digital Era, handbook
httpshttps://www.gsma.com/publicpolicy/wp-content/uploads/2015/10/Competition-Policy-Handbook.pdf
Competition Policy in the Digital Era, Case Studies from Asia & Sub-Saharan
Africa
https://www.gsma.com/publicpolicy/resources/competition-policy-digital-age-case-studies-asia-sub-saharan-africa
GSMA : A New Regulatory Framework for the Digital Ecosystem
https://www.gsma.com/publicpolicy/wp-content/uploads/2016/02/NERA_Full_Report.pdf
GSMA : Reseting Competition Policy Frameworks for the Digital Ecosystem
https://www.gsma.com/publicpolicy/wp-content/uploads/2016/10/GSMA_Resetting-Competition_Report_Oct-
2016_60pp_WEBv2.pdf
COMPETITION POLICY IN THE
DIGITAL AGE
Regulator’s Overview