Market Definition

MARKET DEFINITION AND SIGNIFICANT MARKET POWER ASSESSMENT OF THE TELECOMMUNICATIONS AND BROADCAST SECTORS

Introduction
The Uganda Communications Act of 2013 mandates the Uganda Communications Commission (UCC) to among other functions;

  • Regulate rates and charges for communication services with a view to protect consumers from excessive tariffs and unfair competitive practices – see section 5 (e) of the Act.
  • Promote competition including the protection of operators from acts and practices of other operators that are damaging to competition and facilitate entry of new and modern systems – see section 5(n) of the Act

In the pursuit and achievement of the functions highlighted, the UCC conducts and implements regulatory interventions in the retail and wholesale markets, defines and assesses the markets it regulates, and investigates abuses therein. In addition, the UCC evaluates mergers, acquisitions and license transfers for anti-competitive practices.

In the last four years, since the last high level market definition was conducted, there have been many new, innovative and industry changing developments in the communications sector. These changes have included: convergence of broadcast and telecommunications technologies; introduction and establishment of new business models; the growing importance of Next Generation Technologies; and mergers and acquisitions, to name just a few. These new developments in the communications sector, and their impact on the degree of effective competition therein, have compelled the UCC to define the structure, and assess the competitive conduct and performance in the various markets and sub-markets it regulates.

Objectives
For UCC to appreciate the impact of these new developments and innovations on the degree of effective competition within the communications sector, it was therefore necessary and urgent to undertake a Market definition and Market Power Assessment study. Consequently, in June 2014 the Commission contracted CARTESIAN, a consulting company, to undertake a market definition and market power assessment study of the telecommunications and broadcast markets in Uganda. The key objectives of this study were:

  • Conduct product and or geographical supply and demand side substitutability analyses, hypothetical Monopolist tests, and apply other relevant universally accepted tests in identifying and defining relevant markets.
  • Undertake market power assessments in each of the identified relevant markets
  • Advise on the regulatory treatment and or potential remedial actions to address any and or all anti-competitive issues and or market failures observed in the assessed markets
  • Provide a framework to review and handle the competition concerns that arise whenever there are Mergers and or Acquisitions in the communications sector

Call for Comments
The Uganda Communications Commission now invites the general public, licensees and other stakeholders in the Telecommunications and Broadcasting sectors to provide comments on this Final report. Comments will be accepted for either a part or the whole Report.

All comments should be emailed to competition@ucc.co.ug no later than 30th June 2015.



UCC Market Definition and Market Power Assessment

This document summarises Cartesian's activities in the definition and assessment of markets in the Uganda communications sector, conducted in 2014 for the Uganda Communications Commission.

Date: 2015-06-01

Review of Uganda Communications Markets Relevant Markets Report

The purpose of this report is to define the principal markets in the Uganda telecommunications sector and assess which of these are relevant for competition assessment by the UCC.
Date: 2015-05-29

Cell Site Passive Infrastructure Market Assessment

This document sets out an assessment of whether or not there is effective competition in the market for cell site passive infrastructure within Uganda, (CSPI), particularly whether or not one or more of the tower companies and/or the mobile network operators (MNOs) have significant market power (SMP).
Date: 2015-05-29

Mobile Access, National Voice Calls and SMS

This document sets out an assessment of whether or not there is effective competition in the market for mobile access, national voice calls and SMS within Uganda, ("mobile calling and SMS market") particularly whether or not one or more communications service providers (CSPs) have significant market power (SMP).
Date: 2015-05-29

Mobile Network Access for MVNOs

This document sets out an assessment of whether or not there is effective competition in the market for mobile network access for MVNOs, (the "MNAˇ± market), particularly whether or not one or more of the mobile network operators (MNOs) have significant market power (SMP) in the supply of mobile network access to mobile virtual network operators (MVNOs).
Date: 2015-05-29

Broadband Internet Access from a Mobile Terminal

This document sets out an assessment of whether or not there is effective competition in the market for Broadband Internet Access from a Mobile Terminal within Uganda, ("mobile broadband") particularly whether or not one or more firms hold significant market power (SMP).
Date: 2015-05-29

Mobile Platform Access for SMS-Based Applications (MPA-SMS)

This document sets out an assessment of whether or not there is effective competition in the market for mobile platform access for SMS-based applications within Uganda, (MPA-SMS), particularly whether or not one or more communications service providers (CSPs) have significant market power (SMP).
Date: 2015-05-29

Mobile Platform Access for USSD-based Applications (MPA-USSD)

This document sets out an assessment of whether or not there is effective competition in the market for mobile platform access for USSD-based applications within Uganda, (MPA-USSD), particularly whether or not one or more communications service providers (CSPs) have significant market power (SMP).
Date: 2015-05-29

Voice Call Termination on Mobile Networks

This document sets out an assessment of whether or not there is effective competition in the market for call termination on mobile networks within Uganda, ("mobile termination"), particularly whether or not one or more communications service providers (CSPs) hold significant market power (SMP).
Date: 2015-05-29

Merger and Licence Transfer Framework

This report has been prepared by Cartesian for the Uganda Communications Commission (UCC) within the context of a wider engagement concerning market definition and market power assessment.
Date: 2015-05-29

Regulatory Remedies and Safeguards

This report has been prepared by Cartesian for the Uganda Communications Commission (UCC) within the context of a wider engagement concerning market definition and market power assessment.
Date: 2015-05-29