File #2438: "2018_Book_TheLiberalisationOfTheTelecomm.pdf"

2018_Book_TheLiberalisationOfTheTelecomm.pdf

Text

1|Preface|6
1|Contents|8
1|Abbreviations|15
1|List of Figures|18
1|List of Tables|20
1|Chapter 1: Introduction|21
2|1.1 Background of Research|21
2|1.2 Statement of the Problem|27
2|1.3 Main Objective and Research Questions|29
2|1.4 Justification of Research|30
2|1.5 Research Methodology|31
2|1.6 Limitations of Research|33
2|1.7 Structure of the Study|34
1|Chapter 2: Competition and Regulation of the Telecommunications Sector|36
2|2.1 Rationale for Regulating the Telecommunications Sector|37
2|2.2 Justifying Continued Regulation in the Fully Liberalised Telecommunications Sector|37
2|2.3 Economic Characteristics of the Telecommunications Sector and Regulation|38
3|2.3.1 Significant Economies of Scale|39
3|2.3.2 Network Externalities|40
3|2.3.3 Switching Costs|41
2|2.4 The Market Characteristics in the Telecommunications Sector in Sub-Saharan Africa and the Implications for Regulation|44
3|2.4.1 Substitution of Fixed Line Networks with Mobile Networks|44
3|2.4.2 The Fading Dominance of Former State Monopoly Operator and Rise of Multinational Telecommunications Operators|46
3|2.4.3 Network Infrastructure: Vertically Integrated Telecommunications Operators|49
3|2.4.4 Outsourcing Tower Sites: Rise of Third Party Tower Companies|50
2|2.5 Conclusion|50
1|Chapter 3: Liberalisation of the Telecommunications Sector: From Public Monopoly to Competitive Telecommunications Markets|52
2|3.1 Rationale for Opening Up the Telecommunications Sector to Competition|52
3|3.1.1 The Phasing-Out of the Natural Monopoly Theory Rationale|53
4|3.1.1.1 Technology Change and the Natural Monopoly Theory|54
4|3.1.1.2 Inefficient Monopoly Operator|55
2|3.2 The Specific Factors Leading to the Liberalisation of the Telecommunications Sector in Uganda|56
3|3.2.1 The Influence of Multilateral Development Institutions and Donor Agencies|56
3|3.2.2 The Role of WTO|58
3|3.2.3 The Growth of Mobile Market|59
2|3.3 Evolution of the Telecommunications Policy from Monopoly to Competition|61
3|3.3.1 Liberalisation and Privatisation|61
3|3.3.2 Evolution of the Telecommunications Policy in Uganda from Monopoly to Competition|63
4|3.3.2.1 Monopoly Era (1900-1993)|63
4|3.3.2.2 The Beginning of Competition (1993-1996)|65
5|3.3.2.2.1 Adoption of the Telecommunications Sector Policy Statement of 1996 and the Enactment of the Communications Act of 19...|66
4|3.3.2.3 Privatisation of UPTC and the Duopoly Period (1998-2006)|67
4|3.3.2.4 Full Liberalisation and Telecommunications Policy of 2006|70
4|3.3.2.5 Competition Concerns in the Fully Liberalised Telecommunications Sector|73
2|3.4 Conclusion|74
1|Chapter 4: Regulating Anti-Competitive Conduct in the Telecommunications Market in Uganda|75
2|4.1 Anti-Competitive Conduct in the Telecommunications Sector: Why Uganda Should Focus on the Mobile Market|76
2|4.2 Regulating Anti-Competitive Behaviour: Economy-Wide Versus Sector-Specific Competition Rules|78
2|4.3 Overview of Competition in the Telecommunications Sector in Uganda|79
2|4.4 Main Telecommunications Markets in Uganda|80
3|4.4.1 The Telephony Market|80
3|4.4.2 Fixed Line Market (Voice)|80
3|4.4.3 Mobile Market (Voice)|82
3|4.4.4 Internet Market|85
2|4.5 Specific Market Characteristics of Uganda´s Telecommunications Sector Impacting on the Regulation of Anti-Competitive Beha...|88
3|4.5.1 Strong Presence of Local Subsidiaries of Multinational Corporations (MNCs)|89
3|4.5.2 Vertical Integration in the Telecommunications Markets|92
2|4.6 Legal and Regulatory Framework for Anti-Competitive Behaviour in the Telecommunications Markets in Uganda|97
3|4.6.1 Market Definition in the Telecommunications Sector|98
3|4.6.2 Market Definition Under the Fair Competition Regulations: Is It Modern Enough?|100
4|4.6.2.1 Definition of the Relevant Product Market|102
4|4.6.2.2 Defining the Relevant Geographical Market|106
3|4.6.3 Anti-Competitive Practices|107
4|4.6.3.1 Anti-Competitive Agreements and Concerted Practices|107
5|4.6.3.1.1 Interconnection and Anti-Competitive Behaviour: Emphasis on Call Termination Rates|113
5|4.6.3.1.2 Call Termination Rates and Anti-Competitive Behaviour: Uganda´s Interconnection Regulations|115
4|4.6.3.2 Abuse of Dominant Position by Telecommunications Operator: Defining Dominance in Uganda´s Telecommunications Sector|118
5|4.6.3.2.1 Dominance in the Voice Market|119
5|4.6.3.2.2 Dominance in the Internet Market|122
5|4.6.3.2.3 Collective Dominance|124
4|4.6.3.3 Forms of Abuse of Dominant Position|126
5|4.6.3.3.1 Predatory Pricing|127
5|4.6.3.3.2 Price Discrimination|137
5|4.6.3.3.3 Price Squeeze|146
5|4.6.3.3.4 Refusal to Deal|155
5|4.6.3.3.5 Refusal to Deal in the Telecommunications Regulatory Framework in Uganda|159
5|4.6.3.3.6 Refusal to Interconnect or Act in Good Faith During Interconnection Negotiations|160
6|4.6.3.3.6.1 Refusal to Grant Access to Essential Facilities|162
6|4.6.3.3.6.2 The Essential Facilities Doctrine|164
6|4.6.3.3.6.3 Elements of the Essential Facilities Doctrine|167
6|4.6.3.3.6.4 Implementation of the Essential Facilities Doctrine in the Telecommunications Sector|171
2|4.7 Conclusion|178
1|Chapter 5: Foreign Direct Investment in Telecommunications Sector and Regulation of Anti-Competitive Behaviour: The Specific C...|181
2|5.1 Overview of Significant Mergers Affecting the Telecommunications Sector in Sub-Saharan Africa|187
3|5.1.1 Celtel International BV/Mobile Telecommunications Company KSC (MTC)|187
3|5.1.2 Investcom LLC/MTN International (Mauritius) Limited|188
3|5.1.3 Atlantique Telecom/Etisalat|188
3|5.1.4 Vodacom Group/Vodafone Group|188
3|5.1.5 Zain International BV/Bharti Airtel|189
2|5.2 Similarities Among the Cross-Border Mergers and Acquisitions in Sub-Saharan Africa´s Telecommunications Sector|190
2|5.3 Rationale for the Increase in Cross-Border Mergers in Sub-Saharan Africa|192
2|5.4 Cross-Border Mergers and Acquisitions and Competition|193
2|5.5 Regulating Cross-Border Mergers in the Telecommunications Sector in Uganda|195
3|5.5.1 Regulatory Framework for Cross-Border Merger Control in the Telecommunications Sector|199
4|5.5.1.1 Scope of Application|199
5|5.5.1.1.1 Who Is Subject to Merger Control?|199
4|5.5.1.2 Which Mergers Are Subject to Merger Review?|201
5|5.5.1.2.1 Merger Thresholds|201
5|5.5.1.2.2 Defining Business Transactions: The Concept of Combinations/Concentrations|205
4|5.5.1.3 Notification|206
4|5.5.1.4 Defining an Anti-Competitive Merger|209
4|5.5.1.5 Public Interest Considerations|210
4|5.5.1.6 Merger Review Timeframe|213
3|5.5.2 Overview of the Assessment of the Merger Control Provisions for Uganda´s Telecommunications Sector|214
2|5.6 Co-operation Agreements and Cross-Border Enforcement of Competition Law|216
2|5.7 Regional Integration and Trade Agreements and Competition Law Enforcement|221
2|5.8 Conclusion|226
1|Chapter 6: Regulation of Network Interconnection and Network Access|229
2|6.1 Importance of Access to Telecommunications Facilities|229
2|6.2 Two-Way Access: Interconnection|232
3|6.2.1 Rationale for the Regulation of Interconnection|232
3|6.2.2 Types of Interconnection|234
3|6.2.3 Mobile Interconnection|236
3|6.2.4 Fair and Efficient Interconnection|237
2|6.3 Analysis of the Regulatory Regime for Interconnection in Uganda with Emphasis on Mobile Interconnection|239
3|6.3.1 Competition-Related Interconnection Concerns|240
4|6.3.1.1 Duty to Interconnect|240
4|6.3.1.2 Asymmetric or Symmetric Approach to Interconnection Obligations|241
4|6.3.1.3 Mobile Call Termination Rates|243
4|6.3.1.4 Asymmetric or Symmetric Regulation of Interconnection Rates|247
4|6.3.1.5 Non-discriminatory Interconnection|252
4|6.3.1.6 Delayed Interconnection Negotiations|253
4|6.3.1.7 Incorporation of Unfair Terms and Conditions in the Interconnection Agreement|256
2|6.4 One-Way Access|257
3|6.4.1 One-Way Access Regulation in Sub-Saharan Africa|259
3|6.4.2 Essential Facilities Doctrine: Enhancing Competition in Uganda´s Telecommunications Sector|261
3|6.4.3 Essential Facilities Doctrine: Access to the Fixed Network and Competition in the Internet Market|263
3|6.4.4 Local Loop Unbundling|265
2|6.5 Conclusion|272
1|Chapter 7: Efficient Radio Spectrum Regulation: Facilitating Competition in the Wireless Communications Markets in the Telecom...|275
2|7.1 Importance of Spectrum in the Telecommunications Sector in Sub-Saharan Africa|276
2|7.2 Significance in the Voice and Internet Services Markets|277
2|7.3 Spectrum Scarcity and Efficient Spectrum Management|281
2|7.4 The Debate on Efficient Radio Spectrum Management|283
2|7.5 Spectrum Management in Uganda´s Telecommunications Sector|286
3|7.5.1 The Regulatory Framework for Spectrum Management in the Telecommunications Sector|287
4|7.5.1.1 Legislative Framework on Spectrum Management|288
3|7.5.2 Spectrum Allocation|290
3|7.5.3 Spectrum Assignment|296
4|7.5.3.1 Spectrum Assignment in Uganda´s Telecommunications Sector: Bottleneck to Competition in the Mobile Communications Mark...|298
4|7.5.3.2 Liberalisation of the Telecommunications Sector and the Change in Spectrum Use in Uganda´s Mobile Communications Market|298
3|7.5.4 Analysis of the Regulatory Framework for Spectrum Assignment in Uganda´s Telecommunications Sector|302
4|7.5.4.1 Spectrum Assignment Methods in Uganda|302
3|7.5.5 Alternative Methods of Spectrum Assignment|305
4|7.5.5.1 Spectrum Auctions|306
4|7.5.5.2 Lotteries|312
4|7.5.5.3 Comparative Hearing (Beauty Contests)|314
3|7.5.6 Liberalisation of the Spectrum Assignment Process|318
4|7.5.6.1 Spectrum Trading|319
4|7.5.6.2 Spectrum Commons|322
3|7.5.7 Asymmetric Spectrum Holdings in the Mobile Communications Market and Spectrum Management: A Case for Refarming?|325
3|7.5.8 Spectrum Under-Utilisation|331
4|7.5.8.1 Inefficient Spectrum Utilisation by Telecommunications Operators|332
5|7.5.8.1.1 Anti-Competitive Behaviour and Spectrum Under-Utilisation: Spectrum Hoarding|334
4|7.5.8.2 Enhancing Spectrum Utilisation: The Case for Frequency Sharing|336
2|7.6 Conclusion|339
1|Chapter 8: Competition Regulation in the Telecommunications Sector in Uganda: The Potential Role of a National Competition Law|342
2|8.1 Main Rules for the Regulation of Competition in the Telecommunications Sector|343
2|8.2 Exclusive Reliance on Sector-Specific Rules in Uganda´s Telecommunications Sector: Perceived Weaknesses in Competition Reg...|345
2|8.3 National Competition Law to Facilitate Competition in the Telecommunications Sector|351
2|8.4 Clarifying the Role of a National Competition Authority Regarding Competition Regulation in the Telecommunications Sector|352
3|8.4.1 Mechanisms to Facilitate Efficient Regulation Where There´s Concurrent Jurisdiction|354
4|8.4.1.1 South Africa´s Experience|355
2|8.5 Conclusion|358
1|Chapter 9: Final Conclusions|360
2|9.1 Need for More Vigilant Enforcement of Legislative Framework|363
3|9.1.1 Regulation of Interconnection|364
3|9.1.2 Spectrum Management|365
3|9.1.3 Regulation of Anti-Competitive Behaviour|367
2|9.2 Need to Bolster the Competition Regulation Framework with Economy-Wide Competition Rules|368
3|9.2.1 Role for a National Competition Authority: Relationship Between Sector-Specific Rules and National Competition Law|372
3|9.2.2 Co-operation and Regional Competition Authorities as Means of Enhancing Competition Law Enforcement Capacity|373
2|9.3 Economic Characteristics of the Telecommunications Sector and Uganda´s Market Composition Play an Important Role in the Re...|375
3|9.3.1 Economic Characteristics of the Telecommunications Sector|375
3|9.3.2 Market Composition and the Approach to Regulation|377
2|9.4 Policy Suggestions and Recommendations|379
1|Appendix A: List of Interviewees|382
2|Interviewees|382
1|Appendix B|384
1|Bibliography|387
2|Books and Articles|387
2|Circulars, Presentations, Statistics and Annual Reports|402
2|Table of Cases|402
2|Agreements, Guidelines, Legislation and Policies|404