Telefonica’s and Hutchison’s so called ‘upfront capacity
MVNO’ remedies in Germany and Ireland are neither
capacity based nor effective
Lessons learned from the Austrian, German, Irish and Norwegian mergers
22
nd
April 2015
Consulting topics - Effective remedies in telecom consolidations
A. The Commission, following a flawed and incomplete analysis, incorrectly concluded that the ‘upfront
capacity MVNO’ remedy will remove the competition concerns in the 4 to 3 consolidations in Germany
and Ireland (MVNOs ≠ MNOs)
B. Telefonica’s ‘upfront capacity MVNO’ remedy in Germany was materially weaker than Hutchison’s in
Ireland – Why?
C. Mobile network capacity ≠ network throughput (bandwidth Gbps) or network traffic (volume gigabytes)
D. What are the ‘essential components’ of a genuine ‘upfront capacity MVNO’ remedy?
E. Can a genuine ‘upfront capacity MVNO’ remedy create effective long lasting competitors and remove the
competitions concerns entirely in a 4 to 3 consolidation?
F. Are there any effective remedies (that will remove the competition concerns entirely) for Hutchison’s Telefonica’s o2 UK merger and TeliaSonera’s - Telenor’s Danish merger?
G. What remedies shall be imposed to mergers where a fixed-line broadband incumbent operator acquires a
mobile-only operator: British Telecom - EE UK and Telenet (Liberty Global) - Base KPN Belgian mergers
Some operators carry more traffic at 2x faster speeds with 10x less customers
Mobile data volume (terrabytes), subscribers and end -user experience average blended 2G/3G/4G speeds (Mbps) in 4Q2014
11Mbps
6Mbps
10GB smartphone plan
Operator:
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5Mbps
Terrabytes
6Mbps
12Mbps
6Mbps
8Mbps
19.5m subs
11.5m subs
23.7m subs
2.5m subs
29.2m subs
9.7m subs
34.0m subs
4.5m subs
5Mbps
9Mbps
6Mbps
Prices dfmonitor.eu data volumes operator websites and Rewheel analysis, speeds opensignal.com
© REWHEEL 2015 all rights reserved | www.rewheel.fi | [email protected] | +358 44 203 2339
€25
€101
€38
€53 (5GB)
€25
€41 (8GB)
€44
€44 (6GB)
€40 (6GB)
€60
€60 (6GB)
€89
6Mbps
6Mbps