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Regulation as a mechanism to encourage competition in the area of Telecommunications

08 Nov 2012 Commercial Law Postgraduate Discussion Group
by

Humberto Carrasco

on 9 November 2012

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Transcript of Regulation as a mechanism to encourage competition in the area of Telecommunications

Sector-specific Regulation a.- What is the proper mechanism to promote competition in the telecommunications market? Regulation as a mechanism to encourage competition in the area of Telecommunications Towards the concept of emulated competition Regulatory tools used to foster competition in telecommunications area Questions by Humberto Carrasco
PhD Student
University of Edinburgh Anything in common? Neoliberalism! Liberalisation Privatisation Deregulation Competition Law Interconnection Number Portability Should sectoral regulation and competition law work together? Is sector-specific regulation without the intervention of competition law the best way? Or is the competition law alone the best alternative? b.- If sectoral regulation is necessary, what are the consequences? Is sector-specific regulation a transitory tool in order to advance to ex-post / competition law regulation? Are sectoral regulation and competition law incompatibles? Could sectoral regulation and competition law have mutual influence? Designing and manipulating markets with regulation Regulatory tools Interconnection Local Loop Unbundling Indirect access Number portability Regulation for Competition Synthetic competition Emulated Competition Promote competition! Perfect competition Forms of competition Workable competition Contestable market Effective competition Sustainable competition The mutual influence between sectoral regulation and competition law ¿Compatibles? 1980s 1990s 2000s AT&T Case
Restructured the
U.S.
Telecommunications
Sector Telecommunications
Act
1996 TRINKO LINKLINE 1990s 2000s 2010s The 1998 Package
Liberalise Markets The 2002 Package
SMP Regime The Telecoms Package
Reform Deutsche
Telekom
TeliaSonera
Telefónica 1980s 2000s 2010s General
Telecommunications
Act 18.168
Net Neutrality Act Number Portability Celulink Voissnet Tentative hypothesis a.- Evidence shows that competition law alone is not the best way to introduce competition in the telecommunications market b.- Therefore, regulation, considering sector-specific regulation alone or together with competition law, has been used to promote competition. The result: Oligopoly c.- Although influenced by the US regarding the consumer welfare goal and by the EU regarding the compatibility between sectoral regulation and competition law Chile appears to have its own model d.- I would like to propose the concept of ‘emulated competition’. What is emulated competition? A set of regulatory tools used to foster competition in sector-specific regulation Features a.- Its main goal is promote competition, but it could be combined with non-economic goals, such as, media pluralism or universal service.

b.- Its rules cannot be interpreted in the same way as competition law rules, particularly in an administrative law case. (TELRIC Case US)

c.- Although it could be aligned with competition law methodologies, it does not operate in the same way. (art 14 para 2 Framework Directive concept of SMP)

d.- It could have influence on competition law.

e.- It is permanent, in order to keep competition in concentrated markets. THANK YOU VERY MUCH!
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