Some companies have significant power in communications markets. By regulating such power, we promote competition and reduce entry barriers.
Fair competition generates new services and reduces consumer prices. 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 constantly reviewing the markets. If we find that one company can operate almost independently of its competitors, this company has 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. If competition in communications markets change, we repeal related regulation. To ensure effective and predictable regulation, we have prepared a public roadmap of the regulatory priorities.