Transcript Diapozitiv 1 - DigiWorld by IDATE

LIBERALISATION AND
(DE)REGULATION OF SLOVENIAN
TELECOMMUNICATIONS MARKETS
Presented by
Matej Švigelj
Montpellier, November 2004
INTRODUCTION
Slovenian electronic communications market
• General indicators for Slovenia (2003):
– 2 mio inhabitants
– 685,000 households
– 12,273 EUR GDP per capita (17,090 EUR according to
the PPP)
• Slovenian electronic communications market:
– 782 million EUR (2003)
– 3,2 % of GDP
– Electronic communications market segments by
revenues (2003)
•
•
•
•
•
•
•
Mobile services (44%)
Fixed telephony (28%)
Network interconnection (11%)
Internet (7%)
CATV (3%)
Leased lines (1%), Switched data services (1%)
Others (5%)
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INTRODUCTION
Review of regulation
• Changes in Slovenian legalisation
– Regulation of SMP operators
– Telecommunication Act
• Complied with old EU legislation
– Electronic Communication Act (April 2004)
• Adopted new EU regulatory framework
• Regulatory authority
–
–
–
–
APEK was established in second half of 2001
Performs all regulatory duties stipulated by the EU law
Sector approach to financing
Problems in regulator operations: (education structure, at
enforcing its discretional right)
• Methodology of regulation
– Price cap is statutorily used (in practice: benchmarking)
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MOBILE TELEPHONY
Market structure
• Technology development of mobile telephony in Slovenia
(1991-NMT, 1996-GSM, 2003-UMTS), 90% penetration rate
• Four companies:
– Mobitel (operator)
• 1991 NMT, 1996 GSM, 2003 UMTS, Market share (2003): 73%
– Debitel (service provider)
• Since November 1998, Market share (2003): 4,7%
– Si.mobil (operator)
• Since March 1999, Market share (2003): 20%
– Western Wireless International: Vega (operator, national
roaming)
• Since December 2001, Market share (2003): 2,2%
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MOBILE TELEPHONY
Number of GSM users
1,212
1,125
905
1,000
Mobitel
Debitel
Simobil
Vega
1998
1999
40
350
85
2001
82
2000
4
75
1997
62
5
0
32
35
200
130
148
270
400
64
600
361
552
800
50
Number of customers (in tousands)
1,200
1,276
1,400
2002
2003
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MOBITEL
DEBITEL
SIMOBIL
Oct.03
Jul.03
Apr.03
Jan.03
Oct.02
Jul.02
Apr.02
Jan.02
Oct.02
Jul.01
Apr.01
Jan.01
Oct.00
Jul.00
Apr.00
Jan.00
Oct.99
Jul.99
Apr.99
Jan.99
Oct.98
Jul.98
Apr.98
Jan.98
Oct.97
Jul.97
Apr.97
Jan.97
Oct.96
Jul.96
MOBILE TELEPHONY
Prices
Average real price of a minute of call by companies (in SIT per minute)
120
100
80
60
40
20
0
VEGA
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MOBILE TELEPHONY
Problems and regulators activities
MAIN CHARACTHERISTICS OF
THE MARKET
• Concentrated market structure
due to:
–Late granting of licences to
competing firms
–High call termination prices
between operators (high
difference between off-net and
on-net calls caused tariff
mediated network externality)
• Competition leads to low prices
• Anomalies at granting UMTS
licence
–Brings back monopoly position
at the market for 3G services
MAIN ACTIVITIES OF THE
REGULATOR
• In July 2002 appealed to
operators to set prices based on
the cost of efficient service
provision
•Assigned status of SMP operator
to Mobitel and Si.mobil (Nov 2002
and Dec 2003)
•Introduction of asymmetric model
of call termination prices at the end
of 2003
–Accepted by Mobitel and Si.mobil
–Vega rejected the model and
persists at its standpoint that
ATRP should regulated end-user
prices
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FIXED TELEPHONY
Incumbent
Number of fixed lines of Telekom Slovenije (in 000)
PSTN
31.12.1996
31.12.1997
31.12.1998
31.12.1999
31.12.2000
31.12.2001
31.12.2002
31.12.2003
ISDN
615
663
726
704
664
642
580
563
7
23
46
82
132
180
232
276
Centrex
21
66
70
111
130
Total
622
686
772
807
862
892
923
969
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FIXED TELEPHONY
Incumbent’s tariffs
Slovenia
Monthly rental
- residential (€)
Local call
- 3 minutes (c€)
International call to near country
- 10 minute (c€)
International call to the USA
- 10 minutes (c€)
EU average
10.99
14.20
8.09
13.5
1.8
2.12
1.8
2.12
Source: 4th Report, 2003 and 9th Report-Annex I, 2003.
•Monthly subscription is increasing
•The call prices are decreasing in real terms since 2002
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FIXED TELEPHONY
Fixed-to-fixed interconnections
• Phase One: Benchmarking (August 2003)
–charges were set on EU average level
Local level (c€/min)
Single transit (c€/min)
Double transit (c€/min)
Slovenia
0.75
1.05
1.67
EU average
0.77
1.09
1.74
Source: APEK, 2004
– Local call 2.2 c€/min
– Positive difference was introduced
• Phase Two: Cost based (when?)
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FIXED TELEPHONY
Competition
• New legislation
• Removal of all administrative barriers to entry
-fixed licences for free since 2003
• Reference Interconnection Offer (RIO) since 2004
• Number of operators offering fixed voice telephony: 2
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BROADBAND
Number of connections (000)
2002
2003
mid 2004
DSL
17.000
38.000
53.000
Cable
16.000
22.000
25.000 (est.)
• Market share of SiOL-incumbent (2003):
–99% (DSL), 7% (other broadband technologies)
–66% (all broadband technologies)
•At the end of the 2003 additional price model for ADSL was
introduced
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CONCLUSION
PROSPECTS
•Fixed Voice Telephony
–From monopoly to competition
(international calls)
•Broadband
–From competition (dial up)
to monopoly (DSL)
•Mobile services (Voice)
–From monopoly to competition
•Mobile services (Data) and 3rd
generation
–Monopoly?
•Service competition
–Fixed telephony
•Infrastructure competition
–Mobile services
–Data/Broadband
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