HEADLINE ONE

Is three really a crowd? A look at perspectives from the CaribbeanCompetition Policy in the Digital Age

Ms. Marissa K. Edwards, Telecommunications and Electronics EngineerGreetings from Trinidad and Tobago

Whats the Aim of this presentation?This presentation aims to convey aspects which may be taken into consideration when developing Competition Policies. These aspects are from a Policy perspective which reflect concepts the Author has accumulated during the Course Competition Policy in the Digital Age by GSMA Capacity Training.

Overview of PresentationWhy is the development of a good Competition Policy important in a region of duopoliesIntent of Competition Policy and when it worksWhat happens when there is a lack of competitionConsiderations for the Regulator and Four key things to doSome concerns by the OperatorHow the Consumer can help to drive competitionWorking togetherConclusion PointsReferences

READY OR NOT, HERE IT COMES

ARE YOU READY???Because it would foster an enabling telecommunications environment for ALL players in the markets in the Telecommunications Industry

Why is the development of a good Competition Policy Important in a region of duopolies?

More specifically, its vital becauseIt promotes competitionIt makes markets work betterIt contributes towards improved efficiency in the market.

In order to encourage Investment and Promote Competition, Competition Policy Must Be Developed and Competition Law is used to regulate the service provider and the market. Right?

WRONG!

Competition Policy is intended to be used to remedy market failure in a proactive manner

While the regulations put in place enforces the rules when something actually occursi.e. a case of obvious collusion

Good competition Policy isA key element to foster competitiveness, prosperity and high quality of lifeA tool for creating a competitive market where benefits would be derived such as:Lower pricesGreater choicesInnovationInvestment

Competition is working whenThere are numerous sellers and many buyers in the marketGood quality products are produced at acceptable prices or are driven from the marketThese products must be efficient and produced at lowest cost because.

Only the BEST and MOST EFFICIENT will survive in the market in the long run

Lack of competition matters when Collusion and anticompetitive regulations restrict the entry of new market players..

Competition is therefore stifled

It also means fewer choices and higher prices

THINKStifling Competition means stifling Innovation and Entrepreneurship in the Telecommunications Sector

Some concernsConcern 1 Operators Readiness We are not ready. Try to negotiate for time but..will the time allotted ever be enough?Concern 2 Fear of job Loss:Employee jobs are at risk from the anticipated competition.

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Concern 3 OTTs: A grave Concern for traditional bottlenecks where revenue from mobile voice market is lost

And the Fight Continues for Voice: The ongoing OTT Player vs. Service Provider Saga

Considerations for the Policy Maker/Regulator/Competition AuthorityIt is understood that we may already know of benefits and consequences of competition as there is a wealth of information available online

BUT: What are the repercussions where it does not exist in this Converged Digital Eco-system where Digital technologies are exponentially expanding and Mergers and acquisitions are becoming more economically feasible in order to survive in the market?

And what about potential Investors?

Four key things to do Create a Competition Policy to cover the three main pillars (EU Competition Policy): Antitrust Policy to promote competition, control Mergers /acquisitions and control State Aid. Where the policy already exists, you may consider amending it to ensure there are no gaps!

Further,Amendment to other regulations could have an impact on competition i.e. interconnection- amendment of terms to broaden the services that are and are subject to regulation e.g. voice carrier, voice services may be amended to telecommunications carrier, telecommunications service.

Such a trivial amendment could make a difference?This means the potential is there to significantly widen the scope of services and operations from just voice to telecoms. This is relevant in todays Digital Age! Consider convergence where OTT services carry voice over a single platform.Sure!

2. Keep abreast of International Best Practices as this is vital for developing robust and substantial Competition Policies

Caribbean Telecommunications UnionInternational Telecommunications UnionCommonwealth Telecommunications OrganisationIn this case the Caribbean falls into REGION 2

3. Bear in mind that while benchmarking is essential to gain a global perspective, your Competition Policy should be relevant to the country and the Region assigned by the ITU and based on a VALID and RELEVANT Regulatory Impact Analysis (RIA) on the markets in the telecoms industry which must be carried out by persons qualified and with the experience to conduct RIAs.

4. Understand how important DIRECT INTERACTION and SHARING and LEARNING ONLINE with the industry on a local, regional and international basis ! The GSMA Capacity Training for example, is extremely helpful in gaining invaluable insight in terms of current trends and recent developments on work being done on Competition Policy.

4. Participate!

Consumers, you are of utmost importance!You play an important role in the sustainability of telecoms markets due to the nexus that exists between the empowered consumer and a competitive market.

A well-informed consumer shapes the market through his demand signals. These signal trigger or rather require a response from a competitive market to meet those signals. How the consumer can help to drive competitionThe consumer driving competition? Of course!

The consumer can thus drive competition in a market by demanding lower prices, demanding a variety of choices and pushing for innovativeness in new and improved product offerings.

Thus, the more information consumers have and the less information asymmetries there are in a market, the more rational consumer choices would be. Rational decision making can thus result in a more self-regulated and competitive market.Consumer Education is vital

The regulator and industry can create tools which the consumer can use to measure network and customer experience. i.e. comparative pricing tool, QoS customer satisfaction surveys in regulatory framework which outlines QoS indicators i.e. a Telecommunications Consumer Rights (and ideally Obligations) Policy for Quality of Service. Working TogetherCustomer education about these frameworks (publicly available on relevant website for instance), can empower them even further regarding decision making.

LOCAL REGULATORY BODY

ConsumerINDUSTRY

Working Together

At the end of the day..Fair competition benefits consumers and the economy.An effective framework promotes the interest of the consumer, the producers and the entire nation.The effective implementation of a competition policy leads to the attainment of lower prices, better quality, more choice and easy access.

Start the conversation between Regulator and Industry and empower the consumer

On what we all can do to create the right competitve environment and the right future for your nation.Conclusion Points

SO WE ARE BETTER ABLE TO MANAGE THE SITUATION AND TO ENABLE CARIBBEAN COUNTRIES TO TRULY SUPPORT TELECOMMUNICATIONS COMPETITION

TO PUT THINGS IN PLACE

WE ARE LIVING IN THE DIGITAL AGELook at your industry and visualize how COMPETITION POLICY will impact your industry because CONVERGENCE is impacting everything

Remember too, that from a competition perspective, Entrepreneurship is no longer about just creating a company, it is about creating change and we must facilitate this in whatever way we can!

May the CONVERSATIONBegin TodayTHANK YOU!

REFERENCEShttp://www.gsma.com/publicpolicy/wp-content/uploads/2015/10/Competition-Policy-Handbook.pdfhttp://www.ict-pulse.com/2016/09/competition-economies-scale-challenge-telecoms-caribbean/http://cloudtweaks.com/2016/07/four-keys-telecoms-competing-digital-world/http://www.ict-pulse.com/2014/07/ready-not-coming-telecoms-companies-competition/http://www.peppersandrogersgroup.com/blog/2012/11/3-ways-for-telecoms-to-compete.htmlhttp://www.ict-pulse.com/2016/06/threes-crowd-caribbean-countries-move-telecoms-duopolies/http://www.ict-pulse.com/2014/12/hear-now-voice-caribbean-telecoms-consumers/GSMA Capacity Training Course Competition Policy in the Digital AgeIndustry Experience 2010-present