SMP and Competition Regulation in Thailand

Transcription

1 1 SMP and Competition Regulation in Thailand Onwaree Jarernporn Office of NBTC, Thailand ITU Regional Seminar on Costs and Tariffs for Asia and Pacific and Meeting of the SG3RG-AO Tokyo, Japan, 8-9April 2013

2 2 About NBTC Sector-specific independent regulator Established in August 2004 (NTC Telecom Regulator) Became NBTC (Telecom and broadcasting regulator) in October 2010 Spectrum allocation, licensing, competition regulation, consumer protection

3 3 Competition Regulations NTC Notification Re: Measures for the Prevention of Monopoly or Unfair Competition in Telecommunications Business B.E (2006) NTC Notification Re: Definition of Market and Relevant Telecommunications Market B.E (2008) NTC Notification Re: Criteria and Procedures for Identifying Operators with Significant Market Power in Telecommunications Business B.E (2009) NTC Order Re: Identifying Operators with SMP in Each Relevant Market and the Operators with SMP to Comply with Specific Measures NTC Notification Re: Criteria and Procedures for Merger and Cross-holding in Telecommunications Business B.E (2010)

4 4 Prevention of Unfair Competition 2006 Operators with > 25% market share, or SMP as prescribed by NTC (NBTC) Anti-competitive behaviours include: Discriminatory behaviour at wholesale level Discriminatory prices and conditions, limiting access to essential facility, withholding necessary information, technical sabotage, etc. Abuse of market power at retail level Predatory pricing, bundling and tying-in, limiting supplies, etc. Abuse of other operator s information to gain competitive advantage Collusion

5 5 Market Definition & Relevant Market 2008 Relevant market Demand Substitutability Supply substitutability Market factors SSNIP test Own & cross price elasticity of demand Market structure, level of competition Barriers to entry

6 6 Market Definition & Relevant Market 2008 Relevant Market (Annex) Retail Market Domestic fixed telephone market Domestic mobile telephone market International telephone market Narrowband internet market Broadband internet market Wholesale Market Domestic fixed network market Domestic mobile network market International gateway market International internet gateway market

7 7 Criteria for Identifying SMP 2009 Relevant market (annex of 2008 Notification) Competition analysis HHI Market structure, barrier to entry SMP identification needed?

8 8 Criteria for Identifying SMP 2009 Quantitative (Market share) < 25% : not SMP 25-40% : probably SMP > 40% : SMP Who has SMP? Size of business, econ of scale/scope, vertical integration, variety of products Qualitative technological advantage, access to capital, control over essential facility, distribution level Consumers bargaining power, market expansion, barrier to entry

9 9 NTC Order 2010 Operators with SMP Retail Domestic Mobile Wholesale Domestic Mobile Retail Domestic Fixed Wholesale Domestic Fixed Retail Broadband Internet Retail International Telephone International Gateway International Internet Gateway AIS DTAC TOT True Internet CAT

10 10 NTC Order 2010 SMP Compliance Duty Accounting Separation for the initial stage, file Thailand Uniform System of Accounts or TUSOA Price reports Open access, unbundling and infrastructure sharing Since 2012, Retail Mobile SMP (AIS and DTAC) are also subject to mobile voice price regulation (maximum price at 0.99 baht)

11 11 Merger and Cross-holding 2010 Merger must be approved by NBTC, unless provable that after merger: Licensee s asset value will not exceed 800 million baht Acquired asset value does not exceed 50 million baht Licensee s annual revenue will not exceed 120 million baht An independent consultant will be appointed by NBTC to analyse impact of merger, at the expense of the licensee Shareholder structure, voting rights, relevant market analysis, impact on vertical/horizontal integration, barrier to entry after merger Merger which leads to relevant market domination is prohibited Determined by HHI Cross-holding is prohibited, unless exempted by NBTC

12 12 Experiences and work in progress Many dispute cases under provision of Prevention of Unfair Competition Notification 2006 Operator s disagreement being identified as SMP 1 approved merger case (in post-merger regulation) and 1 on-going merger case Office of NBTC is currently reviewing Relevant Markets and list of SMP

13 Thank you 13