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Summary notification form relating to a draft decisions of the commission of the Independent Post and Telecommunications Authority in the Netherlands with respect to the relevant market for access and call origination on public mobile telephone networks.
This summary notification form relates to a draft decision of the commission of the Independent Post and Telecommunications Authority in the Netherlands (hereafter: the commission) with respect to the relevant market for access and call origination on public mobile telephone networks (market 15).
In accordance with article 6b.2 of the Telecommunications Act the commission notifies draft measures which would affect trade between Member States to the Commission of the European Communities and to the national regulatory authorities. The commission gives both to the Commission of the European
Communities and to the national regulatory authorities the opportunity to make comments to the draft measure.
Comments to this draft measure are due to be sent to Michiel Lugt at Mobiel-MA@opta.nl by 14 October 2005.
The Hague, 14 September 2005
Section 1
Market definition 1.1 The affected relevant product/service market.
The relevant product market consists of the wholesale market for access and call origination on public mobile telephone networks. The market comprises access and call origination for both voice calls and other mobile services (such as SMS, mobile internet, MMS, etc.), both pre pay and post pay services and both private and business calls.
The proposed concentration of Telfort and KPN Mobile, which will reduce the number of wholesale suppliers from 5 to 4, has no consequences for the proposed definition of the relevant market. For an assessment of this concentration, and its consequences on the draft analysis of market 15, please refer to paragraph 2 of ‘Zienswijze overname Telfort’, which is provided separately.
1.2 The affected relevant geographic market.
The relevant geographic market for wholesale provision of access and call origination on public mobile telephone networks is the Netherlands.
1.3 Summary of the opinion of the Netherlands Competition Authority
The Netherlands Competition Authority (NMa) agrees with the conclusions drawn by the commission, as confirmed in a letter to the commission dated 8 March 2005, which is also sent to the European
Commission.
The proposed concentration of Telfort and KPN Mobile has been approved by the NMa. In its
assessment of the concentration, the NMa concluded that there exists a relevant wholesale market of mobile services, which corresponds to the relevant market such as defined by the commission. Please refer to paragraph 20 to 28 of the NMa decision, which is also sent to the European Commission.
11.4 Overview of the results of the public consultation to date on the proposed market definition
See separate chapter 8, ‘Consultatie ontwerpbesluit toegang en gespreksopbouw op openbare mobiele telefoonnetwerken’. In this chapter the results of the public consultation are described, as well as the way in which the consultation will lead to changes in the draft decision ‘De markt voor toegang en
gespreksopbouw op openbare mobiele telefoonnetwerken’ published by the commission on 17 March 2005.
The public consultation has not given the commission cause to make material changes in the proposed market definition.
1 Source: NMa, Besluit van de Raad van Bestuur van de Nederlandse Mededingingsautoriteit als bedoeld in artikel 37, eerste lid, van de Mededingingswet. Nummer 5104 / 45. Zaak 5104/KPN – Telfort.
definition, the proposed concentration of Telfort and KPN Mobile has not led the commission to a renewed public consultation of the proposed market definition.
1.5 Differences with the Commission Recommendation on relevant markets
None.
Section 2
Designation of undertakings with significant market power
2.1 Name(s) of the undertaking(s) designated as having individually or jointly significant market power or where applicable, the name(s) of the undertaking(s) which is (are) considered to no longer have significant market power.
KPN Mobile is considered to no longer have significant market power. No other undertakings are considered to have significant market power, neither individually nor jointly.
The proposed concentration of Telfort and KPN Mobile will not lead to a position of significant market power. Although the level of competition will be lowered, with the remaining four suppliers there are still sufficient, credible alternatives to prevent a situation in which the concentration can behave independent from competitors and customers. For an assessment of this concentration, and its consequences on the draft decision of market 15, please refer to paragraph 2 of the ‘Zienswijze overname Telfort’.
2.2 Criteria relied upon for deciding to designate or not an undertaking as having individually or jointly with others significant market power.
Relevant criteria used for deciding to not designate an undertaking as having individual significant market power:
- market shares;
- technological advantages or superiority;
- countervailing buyer power;
- services diversification;
- economies of scale;
- economies of scope;
- vertical integration;
- potential competition;
- barriers to entry.
Relevant criteria used for deciding to not designate an undertaking as having significant market power jointly with others:
- maturity of the market;
- growth of demand side;
- transparency of the market;
- homogeneity of the product;
- comparability of market shares.
In the assessment of the proposed concentration of Telfort and KPN Mobile, an analysis was made of the way in which the above-mentioned criteria will be changed. Relevant criteria that will be affected are:
- market shares;
- countervailing buyer power;
- economies of scale;
- potential competition.
None of these changes have led the commission to the conclusion that the proposed concentration of
Telfort and KPN Mobile will lead to a position of significant market power
2.3 Name of the main undertakings (competitors) present / active in the relevant market.
Present situation:
- KPN Mobile - Orange - Telfort - T-Mobile - Vodafone Future situation
2:
- KPN Mobile - Orange - T-Mobile - Vodafone
2.4 Market shares of the undertakings mentioned above and the basis of their calculation (e.g., turnover, number of subscribers).
Market shares based on number of subscribers (2001-2003):
2001 2002 2003 KPN Mobile 35-40% 35-40% 30-35%
Vodafone 20-25% 20-25% 20-25%
T-Mobile 10-15% 10-15% 10-15%
Telfort 10-15% 10-15% 5-10%
Orange 5-10% 5-10% 5-10%
Source: OPTA’s market data collection (based on confidential information)
Market shares based on number of subscribers (2004):
39,0%
23,9%
15,2%
11,6% 10,4%
KPN Mobile Vodafone T-Mobile Telfort Orange Source: Oxera (based on public information)
2The concentration of Telfort and KPN Mobile is expected to effectuated before the end of 2005.
Market shares based on turnover:
2001 2002 2003 KPN Mobile 35-40% 30-35% 30-35%
Vodafone 20-25% 20-25% 20-25%
T-Mobile 10-15% 10-15% 15-20%
Telfort 5-10% 5-10% 5-10%
Orange 10-15% 5-10% 10-15%
Source: OPTA’s market data collection (based on confidential information)
Market shares after concentration of Telfort and KPN Mobile, based on market shares 2003:
Source: OPTA’s market data collection (based on confidential information)
Subscribers Turnover Traffic volume
KPN Mobile + Telfort 50-55% 45-50% 40-45%
Vodafone 25-30% 20-25% 20-25%
T-Mobile 10-15% 20-25% 25-30%
Orange 5-10% 10-15% 5-10%
Total 100% 100% 100%
2.5 Summary of the opinion of the national competition authority where provided.
The Netherlands Competition Authority agrees with the conclusions drawn by the commission, as confirmed in a letter to the commission dated 8 March 2005, which is also sent to the European Commission.
In its assessment of the concentration of Telfort and KPN Mobile, the NMa has concluded that with the acquisition of Telfort, KPN Mobile will obtain a strong position on the retail and wholesale market of mobile services. However, the NMa sees no reason to assume that this strong position will give rise to a position of significant market power, or enhance such a position. This conclusion corresponds to the view of the commission. Please refer to paragraph 102 to 111 of the NMa decision for the underlying analysis.
32.6 Summary of the results of the public consultation to date on the proposed designation(s) as undertaking(s) having significant market power (e.g., total number of comments received, numbers agreeing/disagreeing).
See separate chapter 8, ‘Consultatie ontwerpbesluit toegang en gespreksopbouw op openbare mobiele telefoonnetwerken’. The public consultation has not given the commission cause to make material changes in the conclusions regarding undertakings with significant market power.
Since, as described above, the proposed concentration will not lead to a position of significant market power, the proposed concentration of Telfort and KPN Mobile has not led the commission to a renewed public consultation of the conclusions regarding undertakings with significant market power.
3 Source: NMa, Besluit van de Raad van Bestuur van de Nederlandse Mededingingsautoriteit als bedoeld in artikel 37, eerste lid, van de Mededingingswet. Nummer 5104 / 45. Zaak 5104/KPN – Telfort.
