Some companies have significant power in communications markets. By regulating such power, we promote competition and reduce entry barriers.
Effective competition generates new services and reduces consumer prices. If needed it is our duty to make sure that telecommunications operators charge a reasonable price for leasing their communications networks.
What does significant market power (SMP) mean and how do we regulate it?
We are at regular intervals reviewing the markets. If we find that one company can operate independently of its competitors and customers, this company is in the position of significant market power. We impose obligations on such company concerning, for example:
- transfer of the right to use a regulated product or service
- transparency and non-discrimination in service prices and delivery terms
- pricing of products or services.
These obligations reduce entry barriers and problems of competition. We monitor how operators fulfil the obligations both of our own volition and on request. We resolve any conflicts through negotiation and mediation. If necessary, we can also issue a decision open to appeal.
Minimum regulation
We only impose regulation when market reviews suggest that it is necessary. When there is enough competition, we repeal related regulation.