2018 Market Reviews
The Communications Commission (the Commission) is undertaking its second round of market reviews. The last market reviews were published in 2012 and the Commission feels that conditions have changed such that a second round of market reviews should now be conducted.
The Commission has released the review of the Fixed Markets first. The Mobile Market review will follow in due course.
The Telecommunications Wholesale and Retail Fixed Market Review 2019 is now open for consultation on the Consultation Hub:
Responses are invited via the Hub until Friday 31st May.
Following review of responses the Commission will issue the finalised Decision Notices.
We will update this page as and when we can, so that you can remain up to date on our progress.
Frequently asked questions and answers are provided at the bottom of this page.
Current Progress of the Wholesale and Retail Fixed Market Review
We are currently at STAGE 8.
STAGE 1 – Preparatory work
STAGE 2 – Calls for inputs and business industry interviews
STAGE 3 – Data requests to licensed operators
STAGE 4 – Analysis of data requests
STAGE 5 – Market definition and SMP assessment
STAGE 6 – Drafting appropriate remedies
STAGE 7 – Drafting consultation document and draft decision notice
STAGE 8 – Consultation period on the review outcomes
STAGE 9 – Publication of final decisions
STAGE 10 – Implementation of final remedies
What is a market review?
A market review is a process which allows for effective regulation, by considering which products and services belong in a market together, whether that market is competitive, whether there are dominant players with significant market power and whether there are regulatory remedies required to make it more competitive.
Why are you carrying out market reviews?
The Commission regulates through ex ante regulation, which is best practice is the telecoms industry. The EU market review process is seen as the standard. The Commission carries out a simplified variant of the EU reviews, which are more proportionate for an Island of our size.
What is significant market power?
Significant market power (SMP) is where an operator is dominant in a market and is able to act to a considerable extent, without giving consideration to consumers and competitors. For example, if an operator is able to raise its prices significantly without fear of losing customers – perhaps because there are no competitors in the market and it is unlikely that any competitors can enter the market – then it is likely to be dominant.
If an operator has SMP, has it been abusing its market power?
With ex ante regulation, if an operator has SMP, it does not mean that it done anything wrong, or that it has been abusing its market power. Instead, the focus is on whether, that operator could, if it chose to, do something to abuse its market power.
What remedies were imposed after the last round of market reviews?
In the last round of market reviews we identified SMP in several markets and imposed obligations on the relevant licensed operators, which has helped us regulate effectively. These include:
- Price controls on mobile termination rates
- Separated accounting and cost orientation obligations
- Non discrimination and access obligations
- Transparency obligations
- Unreasonable bundling obligations
- Margin squeeze obligations
Manx Telecom split out its wholesale arm from its retail arm so that it can effectively demonstrate compliance with these obligations.
What did the last round of market reviews achieve?
Competition has increased between licensed operators. For example, Manx Telecom, Sure and Wi-Manx are now offering line rental products to consumers. This increases choice for consumers.
Mobile termination rates have decreased to 1.25 pence per minute
Non discrimination obligations mean that all licensed operators must be treated equally by the wholesale arm of Manx Telecom. This means that each operator has the ability to offer the same products and service standards.
Wholesale leased line and broadband prices have reduced.