Effective competition review

1. Effective competition review Mobile market

2. Effective competition reviews • OFTEL’s strategy set out regulatory principles • designed to ensure the the level of regulation is proportionate to the state of competition in different telecoms markets • OFTEL needs to measure effective competition in various markets • this will be done through the effective competition reviews

3. The mobile market review kicks off in September 2000 • The broad market segment is mobile services covered by the mobile PTO licence • In advance of the formal launch • meetings with consumer groups and industry • early opportunity to input into the scope of the mobile review • OFTEL needs data and information from consumer groups and industry

4. Mobile market review • Objectives: • To review the state of the mobile market and to assess if OFTEL’s objective of “effective competition benefiting consumers” is being met • In the light of the results of the review, assess if current regulation continues to be appropriate • Outcomes: • Effective competition exists • The market is not yet effectively competitive but there is evidence that effective competition is developing • The market is not effectively competitive

5. Timetable

6. Outline of the project • Measure consumer benefits of competition in the mobile market • Carry out market reviews • Assess current regulation against the results of the competition review • Consult on proposals for continuing with, amending, or introducing new regulation • Support proposals for any new regulation with a cost benefit analysis

7. Measuring consumer benefits • A competitive market will deliver: • high quality of service, competitive prices, innovative services and choice • Relevant measures of consumer outcomes: • International benchmarking • of prices and availability of standard and innovative products • Tracking UK prices over time • the mobile price index work • Trends in average revenue per subscriber • QoS measures • Availability of information to consumers

8. Market analysis • Starting point: distinct retail and wholesale markets for: • Voice and enhanced services • Indicators of effective competition divided into three groups: • Market structure • Supplier behaviour • Consumer behaviour

9. Assess current regulation • UK specific regulation • Market Influence determinations and the associated triggered licence conditions • European legislation • the SMP designation for mobile operators under the ICD: • CAct

10. Propose action • Deregulatory measures • How self and co-regulatory initiatives can be used in the mobile market • Continuation of existing regulation • Increase in, or new, regulation • How OFTEL considers European legislation should apply to the UK mobile market

11. Comments to OFTEL • If you would like to comment on the scope of the mobile review, please contact the OFTEL team: • Elaine Axby • Mobile policy project director • Heather Clayton • Mobile market review manager • heather.clayton@oftel.gov.uk • 020 7634 8979 • Michael Richardson • Service providers and mobile enhanced services • Nic Green • Stakeholder management and mobile consumer outcomes • Luca Di Mauro • Economic advisor