Competition and economics

The impact of policies, regulation, and institutions on ICT sector performance

25.08.2020

Introduction The current crisis has brought new challenges to the ICT sector. Regulatory frameworks need to be adjusted to stimulate investment while maintaining a moderate level of competition. Markets and consumer benefits are now examined by decision-makers through the lens of financial adversity and uncertain outlooks. Amid disruption, policy-makers and regulators need evidence-based guidance that provides a solid ground for their reforms. A new ITU study has used econometric modelling to examine the impact of the regulatory and institutional frameworks on the performance of the ICT (Information Communication Technologies) sector and its contribution to the national economy as a whole.…

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Competition and regulatory challenges for microstates

25.08.2020

Introduction Throughout the world consumers have similar expectations from the digital economy. They look for data speeds, network coverage, and reliability that allows effective access to the myriad of cloud-based and over-the-top (OTT) services that are now available, and they expect prices both for services and for equipment to be set so that they can afford to access such content. In order to meet these expectations, most countries have adopted a model of regulated competition, in which a small number of licensed network operators compete to provide digital networks and services, each of which is supervised by a national regulatory…

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Australia’s Digital Platforms Inquiry

26.08.2020

Introduction The Digital Platforms Inquiry undertaken by Australia’s competition regulator, the Australian Competition and Consumer Commission (ACCC), during the period from December 2017 to June 2019 was one of the most comprehensive conducted to that time. It was commissioned by the Australian government because of the recognition that major digital platforms were dominating the Australian media and advertising landscape and transforming the way in which Australians were engaging both socially and economically. It further recognized that current legislation and regulation may well have become ineffective when dealing with the new issues for competition and consumer protection that have arisen as…

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Market analysis in Moldova

26.08.2020

Introduction Moldova is a small and relatively poor country on the edge of Europe. It was created in 1991 after the break-up of the Soviet Union and is precariously balanced, politically, socially, and linguistically, between Russia and the European Union. Two thirds of Moldovans are ethnically Romanian, while the disputed industrial area of Trans-Dniester in the East is predominantly Russian speaking and has unilaterally declared its independence from Moldova. The delicate political situation in the country has led the government to follow a strategy of regulatory alignment with the EU, with the long-term goal of joining the EU; however, at…

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Red Compartida, Mexico

26.08.2020

Introduction One of the key issues that countries face as they migrate to the digital economy is to provide incentives for investment in the necessary broadband infrastructure. Some countries have adopted the model of a single, national broadband network. The example of Mexico is especially interesting as the Red Compartida (“shared network”) project is focused on delivering a national broadband mobile (4G-LTE and 5G) network. Why a shared network? Source: IFT. Mexico has never managed to achieve effective competition in telecommunications service provision. América Móvil has retained a market share of more than 60 per cent in the retail mobile…

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Regulation of OTT services in India

26.08.2020

Introduction The Indian government and the Telecommunications Regulatory Authority of India (TRAI) have been investigating ways to regulate over-the-top (OTT) service providers since 2015. The difficulties that they have encountered, despite extensive work over the past five years, exemplified by the fact that no regulations have yet been issued, provide a caution to others seeking to regulate OTT services. The ongoing debate has surrounded two issues in particular: net neutrality and regulatory balance. Net neutrality Net neutrality is the concept that all data packets carried over the Internet should be treated equally. On a strict interpretation, net neutrality prevents telecommunication…

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Changing the operating model: the creation of UNN in Brunei Darussalam

27.08.2020

Introduction Until 2019, the telecommunications industry structure in Brunei Darussalam was based on the traditional model of vertically integrated telecommunications providers (telcos) competing with each other, with Telekom Brunei Berhad (TelBru) the fixed incumbent, DST Communications Sdn Bhd (DST), and Progresif Cellular Sdn Bhd (Progresif) providing mobile services. Each telco largely offered services based on their own respective networks. Located on the island of Borneo, Brunei Darussalam relied on submarine cable networks managed by the Brunei International Gateway Sdn Bhd (BIG) for international connectivity. Brunei Darussalam has a relatively small population of about 420 000 inhabitants and has a correspondingly…

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Iran tariff approval and notification procedures

27.08.2020

Introduction In 2016, after receiving advice from international consultants, the Communications Regulatory Authority (CRA) of Iran introduced comprehensive procedures for the filing of all telecommunications tariffs and for the review and approval of those tariffs that required specific approval. Prior to 2016, the CRA reviewed all tariff filings and subjected all filings to similar processes. The new procedure ensured that regulatory resources were directed to greater scrutiny of tariffs for services in markets where the operators had significant market power (SMP) and were not directed to the ex-ante examination of tariffs for services in markets that were considered to be…

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Vodafone and TPG merger, Australia

28.08.2020

Background Source: ACCC 2019: 31. TPG Telecom Limited (TPG) has operated as a retail service provider in Australia for many years, as both an infrastructure owner and operator – such as local access and submarine fibre cable networks – and as a reseller of services supported by other networks. TPG has acquired its own radiofrequency spectrum suited for the provision of mobile services. Vodafone Hutchison Australia Pty Limited (Vodafone) is a mobile network operator. It operates a third mobile network in Australia and has for several years had a market share of just under 20 per cent in the mobile…

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