The European commission ensures that SMES have the same share in competition by fining large companies that do not obey EU rules. 3. 2 Single Market Act Made Simple The Internal Market has been at the heart of the European project since its origin.
The‘Competitiveness and Innovation Framework Programme'as well as the‘Seventh Framework Programme'both serve the Lisbon Strategy goals and support Europe's competition and innovation capacity.
In a global age of increased competition and more individualised customer demands, constant innovation is needed for businesses to grow
IP and competition policy to support an open innovation environment for all. Case study: The Creative Dublin Alliance The Creative Dublin Alliance is led by a network the Dublin City CEO, with members drawn from the most senior level in local government, commerce, industry, education, state
The report finds that the price of ICT services falls with better market regulation and increased competition.
For example, in developing countries, fixed-broadband prices could be reduced by 10 per cent and mobile-cellular prices by 5 per cent if competition and/or the regulatory framework improved.
101 vii Chapter 4. ICT prices and the role of competition...107 4. 1 Introduction...
140 4. 5 The impact of competition and regulation on telecommunication prices...152 Chapter 5. The role of big data for ICT monitoring and for development...
and equivalized household consumption expenditure (right), by deciles, 2013.151 4. 21 Competition in fixed-broadband markets and fixed-broadband prices as a percentage of GNI p. c
.,2008-2013.155 4. 22 Competition in mobile markets and mobilecellular prices as a percentage of GNI p. c.,
125 4. 2 Relationship between regulation, competition and prices...154 4. 3 Composition of the variable measuring the regulatory environment...
Other most dynamic countries have seen a significant increase in the number of wireless-broadband subscriptions from 2012 to 2013 due to a rise in competition (i e. the awarding of further licences),
The launch of mobile-broadband services by the country's only private-owned operator Tashi Cell in late 2013 has helped to increase coverage and competition in the market,
The rapid uptake of mobile-broadband services was spurred by heated competition among operators offering subsidized smartphones
or more in the majority of countries) are characterized by a high level of competition and high levels of multi-SIM ownership (GSMA and Deloitte, 2013).
increasing competition in the market. 25 Operators in Slovakia and Romania have extended and upgraded their networks
and the role of competition 4. 1 Introduction The price of ICT services constitutes a determining factor for ICT uptake and,
competition and regulation. The objective is to single out some salient explanatory factors for the affordability of ICT prices,
and the role of competition 108 income distribution stems partly from the tracking of global objectives on poverty reduction,
The effects of competition in driving prices down and fostering innovation have been most apparent in the mobile-cellular market,
Regulation sets the framework for competition, and is thus the lever which policymakers and regulators can use to influence competition.
As a result of all the important elements in the analysis of the affordability of ICT prices, competition and regulation are those upon
which telecommunication administrations may exert more direct control. They therefore merit particular attention. This chapter will present
The final part of the chapter will assess the impact of competition and regulation on ICT prices.
Based on an econometric model, a number of conclusions will be presented on the effects of competition and regulation on mobilecellular and fixed-broadband prices.
and the role of competition 110 16.2) per month. 6 This compares with an average of PPP$ 53.0
. on account of the country's low-income level. 10 Further reductions in mobile-cellular prices could be achieved by combining regulatory actions to promote competition such as fostering inter-operator competition
Chapter 4. ICT prices and the role of competition 112table 4. 1: Fixed-telephone sub-basket, 2013 Note:*
and the role of competition 114 Mobile-cellular services are very affordable in most developed countries,
) The almost flat evolution of entry-level fixed-broadband prices in the developed world suggests that competition in the market is centred around higher-end users contracting higher speeds
. c. Chapter 4. ICT prices and the role of competition 116 25.8 of GNI p. c. in the developing world at end 2013.
This suggests that competition is taking place in other (higher-end) segments of the market,
corresponding to 0. 5 per cent of GNI p. c. This is explained not only by the country's relatively Chapter 4. ICT prices and the role of competition 118 high gross national income (the highest in the CIS),
These factors suggest that regulatory measures to promote competition and ease the international connectivity bottleneck could help drive prices down to the levels achieved in other CIS countries,
. Kuwait Qatar Omanbahrain United Arab Emiratestunisiasaudi Arabialebanon Egyptalgeriajordanmorocco Sudanmauritania 23.7 Chapter 4. ICT prices and the role of competition 120box 4. 1:
Regulatory interventions to promote competition and to improve international connectivity could greatly contribute to stimulating the fixed-broadband market.
Sustained initiatives to promote ICT skills in these countries could also contribute to promoting fixed-broadband uptake 20 Chapter 4. ICT prices and the role of competition 122chart 4. 9:
Regulatory action to open the international gateways to competition and to facilitate backhaul (e g. by setting a reference offer for the leased lines of the incumbent that provide connectivity to the landing station) could lower barriers to entry in the market,
and stimulate competition in broadband services. This would contribute to opening up fixed-broadband markets to competition in Africa,
and alter the status quo in several African countries, where the market is concentrated in a single operator.
fixed-broadband markets have been opened to a much larger degree of competition in other regions, to the benefit of customers.
Zambia Benin Burkina Fasomalitogo Madagascar Nigerburundimalawi Rwanda Central African Rep. Chapter 4. ICT prices and the role of competition 124 Table 4. 4:
and the role of competition 126 plans are bundled often with mobile voice and SMS. This makes it difficult to isolate the prices of mobile-broadband services,
handsetbased (500mb) Postpaid computerbased (1gb) Prepaid computerbased (1gb) PPP$ Developing Developed World Chapter 4. ICT prices and the role of competition 128 common in developing countries,
if enough competition exists in the market, these lower costs should be passed on to retail prices.
of competition 130chart 4. 16: Comparison of postpaid fixed-broadband and postpaid computer-based mobile-broadband prices, in USD, by region, 2013 Note:
and in one out of three countries in Chapter 4. ICT prices and the role of competition 132 Table 4. 5:
Chapter 4. ICT prices and the role of competition 134 Table 4. 6: Mobile-broadband prices, prepaid handset-based 500 MB, 2013 Rank Economy Mobile-broadband, prepaid handset-based (500 MB) GNI p
. 16--500 San marino**-26.55 25.64-800 Chapter 4. ICT prices and the role of competition 136 Table 4. 7:
--7 San marino**-38.50 37.17-1 Syria**-89.09--1 Chapter 4. ICT prices and the role of competition 138 Table 4. 8:
and the role of competition 140 the region mobile broadband is more than USD 10 cheaper per month.
100%population Viet nam South africa Chapter 4. ICT prices and the role of competition 142 broadband prices in terms of GNI p. c.,
Top 10%Consumption deciles Angola Uganda As%of household consumption Chapter 4. ICT prices and the role of competition 144table 4. 9:
Chapter 4. ICT prices and the role of competition 146 unaffordable for large segments of the population.
such as for instance Australia, Denmark, Finland and Chapter 4. ICT prices and the role of competition 148table 4. 11:
and the role of competition 150 Sweden, there is on average more than one mobile-broadband subscription per person.
>20%equivalized expenditure Chapter 4. ICT prices and the role of competition 152 broadband services:
but also by affordability. 4. 5 The impact of competition and regulation on telecommunication prices The impact of ICTS as development enablers depends on access to ICT services
and in many cases this is achieved through regulatory actions to promote competition, such as mandating local-loop unbundling
This section presents a quantitative analysis of the role of competition and regulation in shaping prices for mobile-cellular (voice and SMS) and fixed-broadband services.
There is an extensive body of literature looking at the effects of competition and regulation on ICT adoption. 41 However,
when it comes to analysing the impact of competition and regulation on prices, and is limited often in scope because of lack of data for developing countries.
most of them from the developing world, makes it possible to formulate some genuine global conclusions on the links between competition, regulation and telecommunication prices, based on a worldwide representative sample,
competition and prices The fall in telecommunication prices in the last decade, and in the period analysed in this chapter (2008-2013),
which have made more efficient network infrastructure available at lower cost. 42 A pivotal element for ensuring that lower costs are passed on in terms of lower prices for customers is competition.
) Regulators have thus become the custodians of competition in telecommunication services at the country level.
including prices and adoption levels. 45 These findings help shape the conceptual framework for the econometric models presented in this section (Figure 4. 2). Competition directly affects prices in markets where retail prices are deregulated,
and Uruguay that have been created as part of the broadband strategies implemented in these countries. 46 Regulators can also intervene Chapter 4. ICT prices and the role of competition 154 indirectly on retail prices through wholesale price regulation,
as happens in most countries. 47 Regulation also affects the level of competition in each market,
which are important drivers for investment and competition. In addition, regulation can promote efficiency, e g. infrastructure and spectrum efficiency,
enforcement power, mandate and regime (i e. 2 in Figure 4. 2). The direct impact of regulation on competition (i e. 3 in Figure 4. 2) is considered not,
Relationship between regulation, competition and prices Source: ITU. from the effects of competition on prices (i e. 1 in Figure 4. 2),
which are accounted for by the variables on competition. Market competition is one of the main drivers of affordable prices in telecommunication services.
Chart 4. 21 shows the evolution of average entry-level fixed-broadband prices and competition.
The latter is measured using the Herfindahl-Hirschman Index (HHI) for the fixed-broadband market. The HHI is a measure of market concentration,
and is calculated as the sum of the squared market shares (in terms of number of subscriptions) of each Internet service provider (ISP).
The result ranges from 0 (perfect competition) to 1 (no competition, with only one operator in the market.
The fall in entrylevel fixed-broadband prices coincides with an increase in competition in the period 2008-2013.
Chart 4. 22 shows the evolution of entrylevel prices and competition in mobile-cellular markets,
where the decline in prices during the period 2008-2013 has coincided also with an increase in competition.
however, that there is a causal Competition Regulatory environment Institutional framework Prices Autonomy, enforcement power, mandate and regime of the regulator Retail and wholesale price regulation 2 Competition
& foreign participation allowed by regulation 3 Impact of market competition on prices 1 Legal certainty Level playing field Efficient regulation 155 Measuring the Information Society Report
2014 Chart 4. 21: Competition in fixed-broadband markets and fixed-broadband prices as a percentage of GNI p. c.,2008-2013 Note:
Simple averages for 140 economies with available data on fixed-broadband prices and competition for the period 2008-2013.
Source: ITU. Herfindahl-Hirschman Index (HHI) data sourced from Informa. Chart 4. 22: Competition in mobile markets and mobilecellular prices as a percentage of GNI p. c.,2008-2013 Note:
Simple averages for 140 economies with available data on mobile-cellular prices and competition for the period 2008-2013.
Source: ITU. Herfindahl-Hirschman Index (HHI) data sourced from Informa. competition and the openness of the market to private and foreign investment.
The scores of each cluster are combined into a single value for the Regulatory Tracker. The higher relationship between competition and prices,
because there are other factors apart from competition that may also have contributed to improving the affordability of fixed-broadband and mobile-cellular prices in the period 2008-2013.
For instance, economic development may have increased incomes, and thus made services more affordable even if prices have been kept constant.
This enables us to go beyond descriptive statistics and draw some robust conclusions on the link between competition and prices.
the competition framework set by the laws and regulations that defines the level of competition in the different markets (based on what is legally permissible),
. 56 0. 58 0. 60 2008 2009 2010 2011 2012 2013 Fixed-broadband basket as a%of GNI p. c. HHI fixed (competition
)+-HHI fixed broadband (competition) Fixed-broadband basket as%of GNI p. c.+-HHI mobile (competition) Mobile-cellular basket as%of GNI p. c. 0123456789
%of GNI p. c. HHI mobile (competition) Chapter 4. ICT prices and the role of competition 156 the value, the more conducive the regulatory environment to ICT developments.
because it is linked directly to competition, which is considered already in the models through a specific variable on competition (i e. the HHI).
The combined value of clusters 1 to 3 is used to test the link between regulation and prices of mobile-cellular and fixed-broadband services.
Existence of competition authority 9. Appeals to decisions 8. Dispute resolution mechanism 7. Sanctions or penalties imposed by regulator 6. Enforcement power 5. Public consultations
and mobile-cellular prices and competition and regulation metrics, using panel regressions with fixed effects.
as they follow distinctly separate patterns fixed broadband has generally become subject to competition much later than mobile services
and are often the result of the simultaneous effects of technology choices, competition and regulation.
The degree of competition for the fixedbroadband and mobile-cellular markets is captured through the Herfindahl-Hirschman Index (HHI),
On the basis of the HHI, a few strong players may provide more competition than several small competitors.
Chapter 4. ICT prices and the role of competition 158box 4. 2: Panel regression models for fixed-broadband and mobile-cellular prices Two models are used for the regressions:
i e. higher HHI values indicate less competition and, conversely, lower HHI values indicate more competition.
Data sourced from Informa. Herfindahl-Hirschman Index for mobile cellular (voice and SMS: with Li being the number of mobile-cellular subscriptions of firm i,
Competition in the market as measured by HHI is correlated significantly to prices, and the sign indicates that increased competition reduces prices.
The model suggests that changing from two ISPS with 50 per cent market share each to three ISPS with 33 per cent market share each is linked to a reduction in prices of 5. 8 per cent,
and 3. 2 per cent when moving from four to five ISPS (assuming in all cases Chapter 4. ICT prices and the role of competition 160 equal market shares for all ISPS
50 in other words, competition was not as strong in the developing world. According to the results of the econometric model,
if fixed-broadband markets in developing countries were to achieve the competition levels of developed countries,
The effects of competition on prices could be particularly beneficial in the 21 developing countries that by end 2013 still had no competition in fixed-broadband services.
opening up the market to some competition in the remaining 13 developing economies would be a natural option with a view to boosting fixed-broadband penetration,
and this in turn fosters competition and ultimately contributes to achieving lower fixed-broadband prices. The analysis of the variables that affect fixed-broadband prices cannot be reduced to competition only.
The results previously discussed are only valid if considered in combination with the other explanatory variables included in the model.
The ITU data collection considers a minimum of 1 GB Chapter 4. ICT prices and the role of competition 162 monthly consumption for fixed-broadband plans.
such as operators'strategies on data caps, competition in the fixed-broadband market and the ICT regulatory environment, may together be a greater determinant for fixed-broadband prices than the price difference explained by GNI
ITU. 05 10 15 20 25 GNI p. c. Fixedbroadband cap Regulation (clusters 1-3 Regulatory Tracker)% urban population Competition
(HHI)% 163 Measuring the Information Society Report 2014 of competition across countries are estimated to account for 6 per cent of the variations observed in prices.
This provides a quantitative assessment of the benefits that competition and enabling regulation can bring to fixedbroadband markets, particularly in developing countries,
and regulators to set the conditions for more affordable fixed-broadband prices based on increased competition.
Competition in the market as measured by HHI is correlated significantly to prices, and the sign indicates that increased competition reduces prices.
For example, the model predicts that in a market with two mobile-cellular operators sharing the market equally,
Competition in mobile-cellular markets is stronger than in fixed-broadband markets, and differences in competition levels across mobile-cellular markets are on average smaller.
Nevertheless, mobile-cellular markets in developing countries were concentrated on average more than in developed countries at end 2013 (mean HHI of 0. 46 and 0. 35
Chapter 4. ICT prices and the role of competition 164 According to the results of the econometric model,
if mobile-cellular markets in developing countries were to achieve the competition levels prevailing in developed countries,
This highlights the benefits that stronger competition can have on mobilecellular prices in highly concentrated markets.
The link between competition, regulation and prices in mobile-cellular markets discussed is only valid
so that the impact of regulation and competition on prices is assessed discounting the effects of these two variables.
competition is a stronger determinant of pricing trends. Different competition levels may account for an estimated 7 per cent of the differences in mobilecellular prices observed across countries.
Taking into consideration that differences in prices are smaller than in fixed-broadband services, 56 this finding highlights the importance of competition as a driver for lower prices in mobile-cellular markets.
Regulation is found to have a weak explanatory power of only 2 per cent, suggesting that regulation is less of an issue in mobile-cellular markets.
This may be because the regulation in place in most countries (e g. regulation of mobile termination rates) already supports the development of competition in the market
and why light-touch regulation and a liberal spectrum assignment approach may already be conducive to competition and lower prices in mobile-cellular services,
ITU. impact of competition and regulation on fixedbroadband and mobile-cellular prices: Fixed broadband: Different regulation may account for almost 10 per cent of the differences in prices observed across countries.
Different competition levels may explain around 6 per cent of the differences in prices observed across countries.
This confirms that competition plays an important role in determining prices in fixed-broadband markets.
%02468 10 12 14 GNI p. c.%urban population Competition (HHI) Regulation (clusters 1-3 Regulatory Tracker) Chapter 4. ICT
prices and the role of competition 166 Table 4. 15: ICT Price Basket and sub-baskets, 2013 Rank Economy IPB 2013 Fixed telephone subbasket as a%of GNI per capita, 2013 Mobile-cellular subbasket as a%of GNI
and the role of competition 168 and that policy-makers and regulators may need to look at the actions that can be taken to ease capacity bottlenecks.
competition in the fixedbroadband market and the ICT regulatory environment, are together more of a determinant for fixed-broadband prices than exogenous factors,
and competition is stronger in mobile-cellular markets. Different competition levels largely explain the differences in mobile-cellular prices observed across countries (an estimated 7 per cent),
whereas differences in the regulatory environment have less of an impact in setting mobile-cellular prices,
since regulation in most countries is already open enough to allow competition. Regulatory efforts should be focused on ensuring that higher levels of competition are achieved,
particularly in those countries where dominant operators still hold market shares above 60 per cent,
thus limiting the possible benefits that competition may yield in terms of more affordable prices for customers.
or the consolidation of stronger alternative operators and thus help to spur competition in some markets,
These data suggest there is limited competition among operators. 13 Advanced mobile technologies refer to standards agreed by the ITU Radiocommunication Assembly for next-generation mobile technologies IMT-Advanced such as
and the role of competition 170 18 Mauritel reported 7 352 fixed Internet subscriptions by end 2013,97 per cent of which trhough ADSL (source:
) This suggests that organizations wishing to leverage big data for development will face competition from the private sector
Fostering big data competition and openness: Regulators could foster big data competition in increasingly concentrated big data markets,
including by ensuring that data holders allow others to access their data under fair and reasonable terms. 205 Measuring the Information Society Report 2014 International stakeholders International stakeholders including UN AGENCIES and initiatives (such as
Bouckaert, J.,Van dijk, T. and Verboven, F. 2010), Access regulation, competition, and broadband penetration: An international study.
Competition and commercial strategies. Information Economics and Policy, 27,24-38. CETIC. BR (2013), TIC Domicílios (2012), Pesquisa sobre o Uso das Tecnologias de Informação e Comunicação no Brasil.
COSSA 30th Anniversary meeting, Washington, D c. Gruber, H. and Koutroumpis, P. 2013), Competition enhancing regulation and diffusion of innovation:
Koski, H. and Kretschmer, T. 2005), Entry, standards and competition: firm strategies and the diffusion of mobile telephony.
The next frontier for innovation, competition, and productivity. Retrieved from: http://www. mckinsey. com/insights/mgi/research/technology and innovation/big data the next frontier for innovation.
Ros, A. 1999), Does ownership or competition matter? The effects of telecommunications reform on network expansion and efficiency.
Wallsten, S. 2001), An econometric analysis of telecom competition, privatization, and regulation in Africa and Latin america.
Intel's culture has long been built around maintaining market dominance through intense internal competition, said Kim Stevenson, its chief information officer.
And Transport Romania has a low degree of competition and efficiency in the energy and transport industries.
which involves an approach of economic development and innovation in accordance with the specificity of area and competition advantage
First, the Commission shall endeavor to ensure a predictable and consistent regulatory framework that encourages competition while providing incentives to investors.
Ministry for Information Society Although the competition on the electronic communication market increased considerably, this is concentrated in the urban areas;
which drives up the competition between operators; A fairly large high proportion of companies are using e-procurement platforms;
and competition in the areas envisaged by the measure while avoiding at the same time the creation of regional service monopolies.
without obtaining significant benefits as far as the stimulation of the competition is concerned. In such a situation
Ministry of Agriculture Intermediary body for Information Society Promotion Competition Council National Registrar of Companies Ministry of Justice National Centre for Response on Cybernetic Security Incidents
where competition and consumer access stimulate growth and innovation. Functioning as the engine of the new type of growth,
and the competition between the countries primarily means how each country can join and which part thereof in a structure 6 http://ec. europa. eu/internal market/smact/docs/single-market-act2 hu. pdf 7 For the role of the global value chains in the international economy,
The experience and the FP7 framework programme of the 2007-2013 planning period proved that the Hungarian candidates are successful in the competition for resources 29 directly accessible from Brussels. During this period
Due to the lack of proper means to support RDI, Central Hungary is unable to offer further pulling force to the surrounding industrial production and knowledge centres and falls back in the international competition.
which raises significant issues of privacy and competition. Right now few of these opportunities are being taken advantage of by European social innovators
whose dominant players set the terms of innovation and competition. Bria 2012) One of the motivations underpinning this research is investigating how Europe can embrace participatory
IPTV) DRM-heavy apolitical INDIVIDUALISM BUSINESS COMPETITION CENTRALLY CONTROLLED Open and distributed digital ecosystems to foster grassroots social innovation and entrepreneurship.
Competition based on open standards, protocols and formats are essential to deploy interoperability between data, devices, services and networks.
One of them is the examples of competitions and challenges. One of Europe's biggest open data competitions is the Open Data Challenge15.
It was organized by the Open Knowledge Foundation, the Openforum Academy and Share-PSI. eu. It offered 20,
There are many other competitions, such as Apps4finland16, the biggest European apps contest organized since 2009 and Apps for Amsterdam promoted by the City of Amsterdam to make accessible to developers and citizens the data of the City. 44 Growing a Digital Social Innovation Ecosystem for Europe OPEN KNOWLEDGE Co
adapted from Sestini, F (Digital) Innovation Venture capital Big data and cloud computing COMPETITION, ECONOMIC ENTERESTS Innovation and innovation policy are not new to the European union.
There are other elements such as prizes, competitions, events, knowledge sharing and dissemination that should also be included in the mechanisms for DSI policy.
The competition invited Europeans to come up with new solutions to reduce unemployment and minimise its corrosive effects on the economy and society.
Any privileged access provided to the owner/managers of the infrastructure would alter free competition.
and freedom of information online, reasserts the principle of fair competition and guarantees that users may freely choose between services online.
and analysed with the main objective of maximising value extraction (e g. for marketing, economic competition and surveillance).
competitions and challenges or jams would be very helpful mechanisms to deploy. Secondly, beyond general events, the DSI strategy requires a communication strategy.
uk/open-data-challenge-series 44 http://ec. europa. eu/enterprise/policies/innovation/policy/social-innovation/competition/45 http://en
Overtext Web Module V3.0 Alpha
Copyright Semantic-Knowledge, 1994-2011