Himashu Oswal Denmark

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Presented By:Himanshu Oswal (2010SMT6820)

Liberalization Trends inDenmark Telecom

Nothing is permanent, butchange

Heraclitus 535475 BCE, Pre-SocraticIonian Philosopher

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Year Liberalization of

1990 supply and service of telecommunications equipment

1992 cellular communications market for GSM system

1993 use of leased lines for resale of data communicationsservices

1994 used of leased lines for resale of voice services

1995 operating broadband infrastructure within municipalities

1996all telecommunications infrastructure and the services

Chronological PolicyChanges

Source: OECD (1997), The OECD Report on

Regulatory Reform: Volume I: Sectorial Studies,Figure 3.1, Paris, p. 4422


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

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

Regulation of 1996 abolished exclusive rightsof Tele Danmark

Mobile Communication Act(MCA) providedbasis of licensing of additional mobile services

Interconnection act passed to mandate theo erators with market share above 25% to


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Phase 2 of Liberalization...(1999 onwards)

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From Service Based to Facility Based competition

Switched Interconnections rates fell by 23-69%

Following orders of NITA, TDC lowered prices of leased lies

Attribute

Method Comments

FWA Beautycontest

NTA issued 7 licenses to 5operators for FWA in 2000

2G Beautycontest

2 licenses in 1800 MHz(TDC&Sonofon), 2 in 900 MHz (Orange

& Telia) in 2000

3G MoneyAuction

4 licenses out of 5 bidders (TDCMobile International, TeliaMobile,and Orange) at DKK 950 million

each. HI3G came later without


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Attribute 1998/100Inhabitants 2002/100Inhabitants

Fixed line 65.8 72.7

Mobile line 36.3 77.3

Internet line N/A 42.5

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Penetration of Telecom inDenmark

Source: National IT and Telecom Agency, ITU World Telecommunication

Indicators Database

0

2

4

6

8

10

12

NumberofPlayers


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Mobile Virtual Network Operators(MVNO)doesnthave the radio access networks but has its ownMobile Network Code (MNC) & in some cases, its

own Subscriber Identity Module (SIM)Legislation of 2000 obliged Significant Market

Providers

(SMP) to conclude MVNO agreements

First agreement signed in August 2000 betweenSonofon and Tele2 for provision of mobileservices and roaming agreements

Case of MVNO

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National Telecom Ageny(NTA) (1991) UnderMinistry of Information Technology and Research(MITR)

June 1997 Act sets NTAs responsibilities as:

1. Supervising and making decisions for Telecom

legislation2. Establishing administrative regulations

3. Representing Danish telecommunication

interests in international organizations andnegotiations

National RegulatoryAuthority

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Ministry for Science, Technology and Innovationcreated in 2001 as an extension of the formerMITR

National IT and Telecom Agency(NITA) replacedNTA under MSTI

NITA responsibilities include:

1. Develop and implement initiatives within keyareas of the governments IT and policy strategy

2002 Finance Act

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Formed in 1990 by merger of Telecom A/S. & 4regional companies

Govt. started divesting in 1994 with max cap of7.5%

Govt. sold 41.6% stake to Ameritech in 1998

Exclusive right to operate fixed line n/w infrafor voice telephony as well as for leased line

abolished in 1996Renamed to TDC in 2000

TDC Tele Danmark(fixed-line telephony and

data services), TDC Mobile International, TDCInternet, TDC Services (billing, procurement,99

Tele Danmark


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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% andBell South(America) 46.5% stake in GN GreatNordic

2. Telia bought Powercom8, an infrastructure

provider, and in August 2001, it acquiredTele ass ort1010

Major players and M&A


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Competition Policy in case of Denmark, ITU(Nov 2002)

History of Telecommunication

Liberalization, CESifo Dice 2003 editionOECD, Regulatory Reform in theTelecommunications Industry, 2002

1111

References


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THANK YOU

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Himashu Oswal Denmark