On 29 July 2010, the French Competition Authority (the "Authority") issued an opinion on the wholesale market for mobile phone connections between different operators. The Authority issued the opinion at the request of the French Telecommunications and Posts Regulator (the "Regulator").
Mobile phone operators make certain payments to each other whenever the user of one mobile phone operator communicates with the user of another mobile phone operator (the "Rates").
The Authority considers that a decrease in the level of the Rates is necessary in order to protect competition on the markets for electronic communications. Due to high Rates mobile phone operators have been encouraging calls to the same network (for example, by offering unlimited calls to the same operator). Fledgling players and new entrants suffer in this sort of a situation. This is why the Regulator had previously ordered that the Rates be decreased.
Although this decrease helped the development of innovative offers on the retail market, such as unlimited calls to all operators, the difference between Rates and costs for the operators remains too high, and the Authority is of the opinion that the Regulator should further regulate the markets for electronic communications.
The Authority proposes that the Regulator should focus on the development of competition on the mobile phone market by facilitating the entry of new operators. The more intense the competition, the more the operators will have to compete with each other and will not be tempted to pass on any increase in their costs, such as the Rates, to retail prices.
To view Community Week, Issue 483; 6th August 2010 in full, Click here
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.