1) First, Telefónica offered a package of commitments aimed at ensuring the short-term entry or expansion of one or several MVNOs
which will compete with the merged entity. MVNOs offer mobile telecoms
services to consumers through access to the network of MNOs. Telefónica
commits to sell, before the acquisition is completed, up to 30% of the merged company's network capacity to
one or several (up to three) MVNO(s) in Germany at fixed payments. The
capacity is measured in terms of bandwidth and the MVNO entrants will
obtain a dedicated "pipe" from the merged entity's network for voice and
data traffic. This model is more effective than the typical
pay-as-you-go model that MVNOs and Service Providers currently use in
Germany - and more generally in Europe - and under which they pay for
network access on a per usage basis. The Commission's investigation in
this case also showed that the model is viable for the German telecoms
market. Indeed, with a fixed capacity that they committed to pay upfront
at their disposal, the MVNOs will have increased incentives to fill the
capacity they have committed to purchase by offering attractive prices
and innovative services.
2) Second, Telefónica commits to offer to divest radio wave spectrum and certain assets
either to a new MNO entrant or subsequently to the MVNO(s) who will
have taken up the network capacity thanks to the first part of the
commitments. These assets, in conjunction with the upcoming frequency
auction to be organised by the German telecoms regulator, could
facilitate the entry or enable the development of a new MNO into the
German market in the future.
3) Third, Telefónica commits to extend
existing wholesale agreements with Telefónica's and E-Plus' partners
(i.e. MVNOs and Service Providers) and to offer wholesale 4G services to
all interested players in the future. In addition, Telefónica commits
to improve its wholesale partners' ability to switch their customers
from one MNO to another.
read full statement at European Commission
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