The document discusses competition in the mobile telecommunications market in the European Union before and after 2007 and 2012. It covers: 1) Key industry trends and obstacles to competition before 2007, including a lack of price transparency, protectionist policies, and high infrastructure costs. 2) Reasons the EU implemented regulatory changes after 2007 to strengthen consumer rights, reinforce competition, promote investment, reduce prices, and improve transparency. 3) Planned price caps on SMS/data services that took effect in 2012 and their expected impacts, including intensified competition and market changes.

1. Competition in Mobile
Telecommunications
in the European Union
Presenting Group 3:
Artūrs Lazdekalns
Eva Brūna
Igors Jeraševs
Guntis Dlohi
Sanita Samoška
Vishal Verma

2. Presentation Outline
Mobile Telecomuications in the EU ...
1.... before June 30, 2007
2.... after June 30, 2007
3.... after July 30, 2012
4.... Market vs. Intervention

3. Artūrs Lazdekalns
MOBILE TELECOMMUNICATIONS
IN THE EU BEFORE JUNE 30, 2007

4. 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

5. Major transnational operators

6. Major operator aliances

7. Free competition obstacles
High costs for infrastructure on national
level – no sharing policy across the EU
countries
Protective national level legislation – only
few licenses
Bureaucracy in regard to conclusion of
agreements between operators on roaming

8. Igors Jeraševs
MOBILE TELECOMMUNICATIONS
IN THE EU AFTER JUNE 30, 2007

9. 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.

10. Winners and Losers
WINNERS
 Consumers traveling in EU
 Businesses in EU
 EU economics – higher spending, basis for
economic growth
LOSERS
 Mobile operators
 Consumers on national level in some countries
 Consumers traveling to some non-EU countries

11. Guntis Dlohi
MOBILE TELECOMMUNICATIONS
IN THE EU AFTER JULY 30, 2012

12. SMS/Data Services Price Caps
Planned price caps
Source: Memo 12/316 Digital Agenda: New price caps for mobile data roaming expected to save families
over €200 each year and business travelers over €1000
http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/12/316

13. Impact on competition
Competition on national levels and across EU will
intensify
There will be some market players not able to
hold on to low prices and leave the market
Possible specialization among market players
(MNO, MVO, transnational-wholesalers)
How about non-EU operators? They market entry
possibilities? (discussion)

14. Vishal Verma
MOBILE TELECOMMUNICATIONS IN
THE EU: MARKET VS. INTERVENTION

15. Was intervention justified?
Yes, it was!
EU has been an artificial creation with a goal to
foster economic connections between the member
states
Intervention happens in other industries as well
Internally in EU price conditions are more
transparent now
Less entry barriers for new better quality mobile
telecommunications service providers for consumers

16. Thank you for your attention!