Regulation of the mobile communications markets from the perspective of co-relation between services

Abstract

The aim of this article is to answer the question if regulation of call termination in mobile market is sufficient for effective regulation and to ensure the effective competition. The article will analyse the possibility to follow European Commission recommendations without additional market analyses. EC recommends analysing only the market for call termination on each individual mobile network to ensure the efficient competition on the whole mobile market. EC defines, based on demand and supply substitution and obstacles to enter the market, new 7 electronic communications markets and only one on the mobile market. National Regulatory Authorities mostly just follow the recommendation. The article defines which additional elements need to be taken into consideration and when to ensure the effective competition, based on co-relation between the services of termination and origination and its mathematical co-relation to market share. The article defines the border between the regulation, which can only follow EC recommendation and regulation of additional market definitions. Analysis and findings of the article show that because of correlations on the market is impossible to ensure an effective competition, just with the definition of mobile market for call termination on individual network on each geographical market.