By: Amit
EU Commission approves of Irish regulator�s Collective Dominance finding and MVNO plans
The Irish telecommunications regulator, ComReg, has recently announced that the EU Commission endorsed its finding that Vodafone and O2 had Collective Dominance of the Irish mobile market. It is the first decision the EU Commission has taken on Collective Dominance in a European mobile market and may encourage other NRAs to decide on the existence of joint dominance in the market and propose remedies to open up their markets.
On 9 December last year ComReg published the conclusions of its market analysis of the Irish wholesale mobile access and origination market. In its findings, ComReg concluded that neither of the two major Irish operators individually held a position of dominance in the Irish mobile market. However, ComReg�s market analysis led it to conclude that the market was not effectively competitive and that Vodafone and O2 (collectively controlling circa 94% of the market) held a Collective Dominant position in the market.
Having concluded that both Vodafone and O2 have Significant Market Power (collectively with each other) ComReg proposed several remedies with the view of promoting competition in the Irish mobile market, the core remedy being a requirement that Vodafone and O2 open up their networks to alternative providers on non-discriminatory terms. This would enable operators without a mobile network of their own to enter the market as Mobile Virtual Network Operators (MVNOs) and to offer retail mobile services to consumers over the SMP operator�s networks.
It is understood that both the affected mobile operators plan to appeal the Irish regulator�s decision, which might postpone the implementation of the market revamp.
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