Analysys Mason was engaged by a major multinational mobile network operator group to enhance guidance on the determination of significant market power

The problem

• A major multinational mobile network operator group commissioned Analysys Mason to enhance guidance on the determination of significant market power (SMP) and developments in economic regulation in the broader telecoms, infrastructure and digital markets
• This guidance was to inform the group’s subsidiaries on (1) how to identify the risks of being found to have SMP or dominance (leading to the imposition of regulatory interventions) and (2) what course of action to take to manage the risks and impacts of regulatory intervention 

The solution

• The updated guidance covered broader topics in economic regulation
  • discussion of the regulation of infrastructure and digital services was added
• Drawing on our wide-ranging regulatory and policy expertise, we provided insights on recent global developments (such as the EU’s Digital Markets Act and South Africa’s Mobile Broadband Services Inquiry) as well as future expected trends (such as increased regional harmonisation and growing competition from over-the-top (OTT) service providers)
  • this expertise arises from advising both regulators and operators on areas such as dominance assessments, cost modelling and ex-post measures
• Through interviews and our access to research materials, we developed a comprehensive assessment of the status of regulation across the group
• Based on our international regulatory advisory experience, we formulated strategies for the group and its subsidiaries to monitor and mitigate the risks and impacts of regulatory intervention

Figure: Future regulatory developments affecting the group

The result

• The enhanced guidance will help the group to understand the current and future impact of competition regulation on itself and its subsidiaries
• It will also support our client’s engagements with regulators and policy makers, in addition to pre-empting the direction of evolving regulation

¹ MVNOs = mobile virtual network operators; VAS = value-added service