DESIGNATION OF MARKET PLAYERS WITH SIGNIFICANT MARKET POWER
One of the Authority's key functions is to promote and maintain fair and efficient market conduct and effective competition in Brunei Darussalam's telecommunications sector. To rationalise the sector, the Authority undertook an exercise to identify Market Players with Significant Market Power ("SMP") which will lower entry barriers and give smaller or newer players the opportunity to attain a better competitive position in the sector.
The exercise distinguished Market Players that are subject to competitive market forces from Market Players with SMP, whose conduct are not constrained adequately by competitive market forces. Market Players with SMP generally have the ability to behave independently and affect prices by raising the market price or restricting output. If a Market Player is designated as having SMP, additional regulatory requirements are imposed such as obligations to provide Infrastructure or Services to Customers, End Users or to other Market Players on reasonable, competitive, transparent, and non-discriminatory prices, terms and conditions and not limit the access of other Market Players in the relevant market. Market Players with SMP are also required to offer any Infrastructure or Service on a wholesale basis unless waived or exempted in writing by the Authority. Market Players with SMP will further be required to obtain the Authority's approval for the tariffs on which it offers certain infrastructure or services.
The Authority has approached this exercise with a series of open and transparent consultations with Market Players and agrees with feedback received indicating that the Brunei market structure is relatively small and highly concentrated so it is likely that SMP exists in key markets and it should be a priority for the Authority to address the potential for abuse of this dominance. However, the current market definitions utilised and designations of SMP are by no means permanent and the Authority may review and revise the markets that it has identified for ex ante regulations at this time, as well as its classification of Market Players with SMP.
The Authority's decisions are based on information obtained from the relevant Market Players in response to the Authority's notice to provide information issued on 2 July 2015, the Authority's subsequent consultations with the Market Players on its preliminary findings as well as the Authority's own data. The Authority has now identified the following Market Players as having SMP in each of the relevant markets:
There are plans to introduce a
Code of Practice For Competition In The Provision Of Telecommunication (and Broadcasting) Services and a
Code of Practice to Regulate Tariffs in the Telecommunications (and Broadcasting) Sectors, however, pending the introduction of these Codes of Practice, the Authority has issued a Directive under the Authority for Info-communications Technology Industry of Brunei Darussalam Order, 2001 and the Telecommunications Order, 2001 which provides transparency about the steps taken by the Authority to arrive at this designation of SMP. This Directive will terminate when these aforementioned Codes of Practice take effect, however, the designation of SMP will survive the termination of the Directive and will continue in effect and will be deemed to have been made by the Authority under the corresponding provisions of the aforementioned Codes of Practice. Licensees who have been designated as Market Players with Significant Market Power will thereafter take on and comply with all relevant duties and obligations imposed under the Code of Practice For Competition In The Provision Of Telecommunication and Broadcasting Services and the Code of Practice to Regulate Tariffs in the Telecommunications and Broadcasting Sectors.
here to download the Regulatory Directive
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