Regulation in Modern Telecoms Programme

Regulation in Modern Telecoms Programme

The course will cover:

Why Regulate?

  • Markets and market failure
  • The importance of the consumer
  • Economic fundamentals: supply and demand; competition and monopoly
  • Networks and network effects
  • Ensuring “any-to-any” connectivity
  • Regulation vs. competition law

Regulatory Institutions and the Process of Regulation

  • The law
  • National Regulatory Authorities
  • Ex ante market reviews
  • Licences
  • The EU model

The Market Review Process (1): Market Definition

  • What is a market?
  • What is a “relevant market”?
  • Product and Geographic markets
  • The Hypothetical Monopolist Test
  • Technological and social challenges to market definitions
  • Case study: defining the broadband access market

The Market Review Process (2): Market Power

  • What is “market power”: EU, US definitions
  • How do regulators decide if a firm has market power?
  • Market share
  • Countervailing Buyer Power
  • Other Criteria
  • Case study: market power in mobile communications

Abuse of a Dominant Position

  • Exclusion and Exploitation
  • Anti-competitive practices
    • Price and non-price discrimination
    • Margin squeeze
    • Predatory pricing
    • Refusal to supply
    • Bundling and Tying
  • Ensuring you do not abuse a dominant position
  • Spotting abuse by others

The Market Review Process (3): The Regulator’s Power to Impose Remedies

  • Powers available to the regulator
  • Price controls
  • Transparency
  • Accounting Separation
  • Non-Discrimination
  • Access and Local Loop Unbundling
  • Functional Separation
  • Case study: LLU and separation

Cost Models

  • Benchmarks, FAC and LRIC
  • Increment costs, “mark ups” and prices
  • “Efficient component pricing rule”
  • Price floors and ceilings
  • Pricing and investment risk
  • Pricing unbundled elements
  • Mobile call termination
  • Externalities and mobile call termination pricing

Regulating Radio Spectrum

  • Spectrum management
  • Spectrum as a resource
  • Spectrum policy and planning
  • National frequency allocation tables
  • Licensing, authorisation and administration regimes
  • The economics of radio spectrum
  • Spectrum pricing
  • Cost recovery
  • Administrative incentive pricing
  • Auctions

The Regulatory Function

  • Whose responsibility?
  • Required skills
  • Supporting the business
  • Relationship with the regulator
  • Choosing your battle