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Shaping The Asia Pacific MVNO Market 2018


Apple's recent earnings call grabbed a lot of headlines, and the resulting momentum has nudged the company towards hitting an unprecedented US$1 trillion valuation. Buried a little deeper in the weeds, however, was another significant milestone: in June 2018 Apple Pay processed 1 billion cumulative transactions. While the mobile payment play's growth has been a lot slower than some predicted, it is clear it has put down deep roots and sprouted. Nevertheless, there are still some markets that are proving particularly tough seeds to sow for Apple and its competitor X-Pays.




Shaping the Asia Pacific MVNO Market 2018


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According to the CRA, as of 2020, there are three licensed Public Fixed Telecommunications Networks and Services providers in the fixed telecommunications market in Qatar, i.e., Ooredoo, Vodafone Qatar, Qatar National Broadband Network (QNBN).The retail market is a duopoly, in which Ooredoo is the incumbent and Vodafone Qatar is the challenger. QNBN is the third service provider and is primarily a wholesale provider of passive fixed connectivity services. Ooredoo and Vodafone Qatar form a duopoly in the mobile market in Qatar, concentrated with Ooredoo having a subscriber market share of around 63% in 2018.


The telecommunications sector is broadly regulated by the current regulatory framework for electronic communications,[2]adopted in 2002 and updated in 2009, which has since been supplemented by a number of additional legislative instruments. The current framework is made up of a number of directives and regulations, including the Access Directive,Footnote 39the Universal Service Directive, the Regulation on Body of European Regulators for Electronic Communications(BEREC), and the Regulation on roaming on public mobile communications networks. [3]The framework is designed in consideration of technological progress and market requirements within the EU. More recently, the EU adopted the European Electronic Communications Code(EECC), which aims to apply uniform rules throughout Europe, encourage competitive pricing, and protect consumers. The EECC entered into force in December 2018 and will need to be transposed into national law within member states by December 2020. [4]


In the fixed line market, digital subscriber line connection remains the dominant national technology. However, FTTH connections have increased, partly as a result of strong investments in infrastructure from French telecommunications companies and local authorities, generally with financial support from the government. As of 31 December 2018, more than 13.6 million private residences and commercial premises were linked to an FTTH network, representing an increase of 3.2 million (31 per cent) since 2017.


Given the price unpredictability, ARCEP imposed price caps for the years 2018-20 (previously, rates had been set on an annual basis) for local and sub-loop unbundling and for central access provided at a fixed location for mass-market products in order to increase the certainty of prices. [28] ARCEP also proposed to set the tariffs for full unbundling and bitstream using the top-down methodology that is currently in use and the newly developed bottom-up cost model (BU-LRIC+), based on the costs of deploying a shared FTTH network. [28] In addition, ARCEP proposed to set price caps for the copper full unbundling monthly fee, and to maintain price caps on partial unbundling and DSL access.


The Bundesnetzagentur (BNetzA) is the main federal agency responsible for regulating the telecom market in Germany. Deutsche Telekom AG (DT) is the largest telecommunications provider, with 44 per cent of national telecom revenue in 2018. [1] DT is judged to have significant market power (SMP) and is the main provider of wholesale services in Germany. Its various wholesale activities are performed by a subsidiary, Deutsche Telekom Global Carrier, which provides wholesale services not only in Germany, but also internationally. [2]


Competitive investment in the telecommunications market (defined as all companies excluding DT) increased to 51 per cent in 2018, up from 49 per cent in 2017. In 2018, there were 25 million broadband connections in Germany, with the majority based on DSL technologies. All other technologies accounted for approximately 9.2 million connections (8 million HFC connections and approximately 1.1 million fibre-to-the-building (FTTB) or fibre-to-the-home (FTTH) connections. Fixed-network broadband connections accounted for 34.2 million connections, and connections with speeds of minimum 100 megabits per second (Mbps) rose to 6.8 million (a 39 per cent increase compared to 2017). While the trend favours the adoption of higher speeds by broadband users, 4.1 million customers continued to use speeds of under 10 Mbps. [1]


In EC docket DE/2018/2133 (2018), BNetzA decided on remedies to be applied to wholesale high-quality access provided at a fixed location. The EC again criticized the regulatory authority for the length of time it had taken to impose remedies after the market analysis was performed, the market analysis for this wholesale segment having been performed in 2016. The EC urged BNetzA to detail its price control measures as soon as possible. [27]


As indicated above, Ofcom used CCA FAC, or other similar approaches such as LRIC+, when setting charge controls in the past. In its 2018 wholesale local access market review [16], Ofcom recognized the similarities between CCA FAC and LRIC+, noting that both standards use accounting rules and assumptions for the recovery of common costs for different services and reflect forward-looking costs rather than the actual prices at the time assets are purchased.


National regulatory authorities designate market power as an entity having the ability to influence market conditions, i.e. an uncontrolled room for manoeuvre, which is deemed to be the case when the market share is equal to or exceeds 40 per cent (the SMP Guidelines were updated in 2018, cf. European Commission Communication C(2018)2374) (European Commission 2002).


Amdocs, Netcracker Technology, CSG Systems International, Oracle Corporation, Hewlett Packard Enterprise, Enghouse Networks, BearingPoint, Zuora Inc., Apptus, Subex Ltd., Mahindra Comviva, Cerillion, Optiva, Huawei, Sterlite Technologies, Tecnotree, Emersion Systems, CommScope Holding Company Group Inc., and Intracom Telecom are among the key market players shaping the Telecom Billing and Revenue Management Industry.


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