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Marissa K. Edwards - Competition in the Digital Age

This presentation, mainly from a Caribbean perspective, highlights considerations for the Regulator, Industry and Consumer to bear in mind on how they can contribute toward an effective Competition Policy to benefit the society and nation as a whole..

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Marissa K. Edwards - Competition in the Digital Age

  1. 1. Ms. MarissaK.Edwards,TelecommunicationsandElectronicsEngineer Greetings from Trinidad and Tobago
  2. 2. What’s the Aim of this presentation? • This presentation aims to convey aspects which may be taken into consideration when developing Competition Policies. These aspects are froma Policy perspective which reflect concepts the Author has accumulated during the Course “Competition Policy in the Digital Age” by GSMACapacity Training.
  3. 3. Overview of Presentation • Why is the development of a good Competition Policy important in a region of duopolies • Intent of Competition Policy and when it works • What happens when there is a lack of competition • Considerations for the Regulator and Four key things to do • Some concerns by the Operator • How the Consumer can help to drive competition • Working together • Conclusion Points • References
  4. 4. More specifically, it’s vital because • It promotes competition • It makes markets work better • It contributes towards improved efficiency in the market.
  5. 5. Competition Policy is intended to be used to remedy market failure in a proactive manner • While the regulations put in place enforces the rules when something actually occurs • i.e. a case of obvious collusion
  6. 6. Good competition Policy is • A key element to foster competitiveness, prosperity and high quality of life • A tool for creating a competitive market where benefits would be derived such as:  Lower prices  Greater choices  Innovation  Investment
  7. 7. Competition is working when • There are numerous sellers and many buyers in the market • Good quality products are produced at acceptable prices or are driven from the market • These products must be efficient and produced at lowest cost because…….
  8. 8. Only the BEST and MOST EFFICIENT will survive in the market in the long run
  9. 9. Lack of competition matters when • Collusion and anticompetitive regulations restrict the entry of new market players….. Competition is therefore stifled
  10. 10. It also means fewer choices and higher prices THINK Stifling Competition means stifling Innovation and Entrepreneurship in the Telecommunications Sector
  11. 11. Some concerns Concern 1 Operator’s Readiness “We are not ready.” Try to negotiate for time but…..will the time allotted ever be enough? Concern 2 Fear of job Loss: Employee jobs are at risk from the anticipated competition.
  12. 12. Concern 3 OTTs: A grave Concern for traditional bottlenecks where revenue from mobile voice market is lost
  13. 13. Considerations for the Policy Maker/Regulator/Competition Authority It is understood that we may already know of benefits and consequences of competition as there is a wealth of information available online ……
  14. 14. BUT: What are the repercussions where it does not exist in this Converged Digital Eco-system where Digital technologies are exponentially expanding and Mergers and acquisitions are becoming more economically feasible in order to survive in the market?
  15. 15. And what about potential Investors?
  16. 16. Four key things to do 1. Create a Competition Policy to cover the three main pillars (EU Competition Policy): Antitrust Policy to promote competition, control Mergers /acquisitions and control State Aid. Where the policy already exists, you may consider amending it to ensure there are no gaps!
  17. 17. Further, Amendment to other regulations could have an impact on competition i.e. interconnection- amendment of terms to broaden the services that are and are subject to regulation e.g. “voice carrier”, “voice services” may be amended to “telecommunications carrier”, “telecommunications service”.
  18. 18. Such a trivial amendment could make a difference? This means the potential is there to significantly widen the scope of services and operations from just voice to telecoms. This is relevant in today’s Digital Age! Consider convergence where OTT services carry voice over a single platform.
  19. 19. 2. Keep abreast of International Best Practices as this is vital for developing robust and substantial Competition Policies In this case the Caribbean falls into REGION 2
  20. 20. 3. Bear in mind that while benchmarking is essential to gain a global perspective, your Competition Policy should be relevant to the country and the Region assigned by the ITU and based on a VALID and RELEVANT Regulatory Impact Analysis (RIA) on the markets in the telecoms industry which must be carried out by persons qualified and with the experience to conduct RIAs.
  21. 21. 4. Participate!
  22. 22. Consumers, you are of utmost importance! You play an important role in the sustainability of telecoms markets due to the nexus that exists between the empowered consumer and a competitive market.
  23. 23. A well-informed consumer shapes the market through his demand signals. These signal trigger or rather require a response from a competitive market to meet those signals. How the consumer can help to drive competition The consumer driving competition? Of course!
  24. 24. The consumer can thus drive competition in a market by demanding lower prices, demanding a variety of choices and pushing for innovativeness in new and improved product offerings.
  25. 25. Thus, the more information consumers have and the less information asymmetries there are in a market, the more rational consumer choices would be. Rational decision making can thus result in a more self-regulated and competitive market. Consumer Education is vital
  26. 26. The regulator and industry can create tools which the consumer can use to measure network and customer experience. i.e. comparative pricing tool, QoS customer satisfaction surveys in regulatory framework which outlines QoS indicators i.e. a Telecommunications Consumer Rights (and ideally Obligations) Policy for Quality of Service. Working Together Customer education about these frameworks (publicly available on relevant website for instance), can empower them even further regarding decision making.
  27. 27. Working Together
  28. 28. At the end of the day….. • Fair competition benefits consumers and the economy. • An effective framework promotes the interest of the consumer, the producers and the entire nation. • The effective implementation of a competition policy leads to the attainment of lower prices, better quality, more choice and easy access.
  29. 29. Start the conversation between Regulator and Industry and empower the consumer On what we all can do to create the right competitve environment and the right future for your nation. Conclusion Points
  30. 30. SO WE ARE BETTER ABLE TO MANAGE THE SITUATION AND TO ENABLE CARIBBEAN COUNTRIES TO TRULY SUPPORT TELECOMMUNICATIONS COMPETITION TO PUT THINGS IN PLACE
  31. 31. WE ARE LIVING IN THE DIGITAL AGE Look at your industry and visualize how COMPETITION POLICY will impact your industry because CONVERGENCE is impacting everything
  32. 32. Remember too, that from a competition perspective, Entrepreneurship is no longer about just creating a company, it is about creating change and we must facilitate this in whatever way we can!
  33. 33. May the CONVERSATION Begin Today THANK YOU!
  34. 34. REFERENCES • http://www.gsma.com/publicpolicy/wp-content/uploads/2015/10/Competition-Policy-Handbook.pdf • http://www.ict-pulse.com/2016/09/competition-economies-scale-challenge-telecoms-caribbean/ • http://cloudtweaks.com/2016/07/four-keys-telecoms-competing-digital-world/ • http://www.ict-pulse.com/2014/07/ready-not-coming-telecoms-companies-competition/ • http://www.peppersandrogersgroup.com/blog/2012/11/3-ways-for-telecoms-to-compete.html • http://www.ict-pulse.com/2016/06/threes-crowd-caribbean-countries-move-telecoms-duopolies/ • http://www.ict-pulse.com/2014/12/hear-now-voice-caribbean-telecoms-consumers/ • GSMA Capacity Training Course – Competition Policy in the Digital Age • Industry Experience 2010-present

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