Liberalization Trends in Denmark Telecom

Nothing is permanent, but change Click to edit Master subtitle style Heraclitus 535475 BCE, Pre-Socratic Ionian Philosopher Presented By: Himanshu Oswal (2010SMT6820)

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Chronological Policy Changes

Year 1990 1992 1993 1994 1995 1996 Liberalization of
supply and service of telecommunications equipment cellular communications market for GSM system use of leased lines for resale of data communications services used of leased lines for resale of voice services operating broadband infrastructure within municipalities all telecommunications infrastructure and the services

Source: OECD (1997), The OECD Report on Regulatory Reform: Volume I: Sectorial Studies, 4/8/12 Figure 3.1, Paris, p. 44

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Phase 1 of Liberalization... (1995-1999)

National Telecom Agency(NTA) focus consisted of price cap regulations on end-user tariff, interconnection regulation

Regulation of 1996 abolished exclusive rights

of Tele Danmark

Mobile Communication Act(MCA) provided

basis of licensing of additional mobile services

Interconnection act passed to mandate the 4/8/12

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operators with market share above 25% to

Phase 2 of Liberalization... (1999 onwards) Based competition From Service Based to Facility
Switched Interconnections rates fell by 23-69%

Attribut Method e FWA Beauty contest 2G Beauty contest 3G

Following orders of NITA, TDC lowered prices of leased lies

Comments

Money Auction

NTA issued 7 licenses to 5 operators for FWA in 2000 2 licenses in 1800 MHz(TDC &Sonofon), 2 in 900 MHz (Orange & Telia) in 2000 4 licenses out of 5 bidders (TDC Mobile International, TeliaMobile, and Orange) at DKK 950 million 4/8/12 each. HI3G came later without 44

Penetration of Telecom in Denmark

Attribute 1998/100 2002/100 Inhabitants Inhabitants Fixed line 65.8 72.7 Mobile line 36.3 77.3 Source: National IT and Telecom Agency, ITU World Telecommunication Internet line N/A 42.5 Indicators Database
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Number of Players

8 6 4 2 0 4/8/12 55

Case of MVNO
Mobile Virtual Network Operators(MVNO)doesnt

have the radio access networks but has its own Mobile Network Code (MNC) & in some cases, its own Subscriber Identity Module (SIM) Providers

Legislation of 2000 obliged Significant Market

(SMP) to conclude MVNO agreements

First agreement signed in August 2000 between

Sonofon and Tele2 for provision services and roaming agreements

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of

mobile
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National Regulatory Authority

National Telecom Ageny(NTA) (1991) Under

Ministry of Information Technology and Research (MITR)

June 1997 Act sets NTAs responsibilities as:

1. Supervising and making decisions for Telecom

legislation
2. Establishing administrative regulations 3. Representing Danish telecommunication

interests in international organizations and 4/8/12 negotiations

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2002 Finance Act

Ministry for Science, Technology and Innovation

created in 2001 as an extension of the former MITR NTA under MSTI

National IT and Telecom Agency(NITA) replaced NITA responsibilities include:

1. Develop and implement initiatives within key

areas of the governments IT and policy strategy

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Tele Danmark
Formed in 1990 by merger of Telecom A/S. & 4

regional companies 7.5%

Govt. started divesting in 1994 with max cap of Govt. sold 41.6% stake to Ameritech in 1998 Exclusive right to operate fixed line n/w infra

for voice telephony as well as for leased line abolished in 1996

Renamed to TDC in 2000 TDC Tele Danmark(fixed-line telephony and

data services), TDC Mobile International, TDC 4/8/12 Internet, TDC Services (billing, procurement,

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Major players and M&A

TDC(Fixed line, mobile, internet),

Sonofon(mobile), Telia(Fixed, mobile, internet), Orange (GSM), Tele2(fixed, dial up internet), Debitel(mobile), Tiscali( Internet)

Major Mergers and Acquisitions 1. In 2002, Telenor(Norway) acquired 53.5% and

Bell South(America) 46.5% stake in GN Great Nordic provider, and in August 2001,4/8/12 it acquired Telepassport

2. Telia bought Powercom8, an infrastructure

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References
Competition Policy in case of Denmark, ITU

(Nov 2002)

History of Telecommunication

Liberalization, CESifo Dice 2003 edition

OECD, Regulatory Reform in the

Telecommunications Industry, 2002

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THANK YOU

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