CoE/ARB Workshop On Development ICT Compaction polices Rabat – Morocco, 9 – 11 May 2012 PROCESS OF DEPLOYMENT OF COMPETITION IN THE TELECOM MARKET IN MOROCCO.

CoE/ARB WorkshopCoE/ARB WorkshopOnOn

Development ICT Compaction polices Development ICT Compaction polices Rabat – Morocco, 9 – 11 May 2012Rabat – Morocco, 9 – 11 May 2012

PROCESS OF DEPLOYMENT OF COMPETITION IN PROCESS OF DEPLOYMENT OF COMPETITION IN THE TELECOM MARKET IN MOROCCOTHE TELECOM MARKET IN MOROCCO

• The regulations and the price controls were specified by the law 008-71 of October 12th, 1971;

• The price lists of the telecoms services were fixed by the Prime Minister;

• The Program agreement between the State and the ONPT (1993-1997 ) authorized the Office to revise its price in the sense of a bigger coherence with the costs, a lesser consideration of the factor of distance and a bigger harmony with the levels of the international price;

• THE ONPT was authorized to review its price provided that ' they do not overtake in dirhams, the average level of price applied in 1993.

• From 1998 the ANRT began to regulate the pricing for the Telecom services.

OVERVIEW ABOUT THE EVOLUTION OF TELECOMMUNICATIONS PRICES

THE STAKES OF THE COMPETITION’SCOMPETITION’S DEPLOYEMENT DEPLOYEMENT IN TELECOMMUNICATIONS

For the userFor the operator

Reduction in tariffs

Diversity of services

Traffic growth

Technology innovation

New issues for regulatorNew issues for regulator

Maroc

Concurrence efficacePas de Concurrence

WHY A REGULATOR OF TELECOM SECTOR ? WHY A REGULATOR OF TELECOM SECTOR ? (1/2)(1/2)

- The complexity of telecommunications sector , a sector where the

guaranty of access and communications should be ensured for each

customer in all networks.

- The success of competition in the telecom sector depend directly of

management of scarce resources like : numbering, frequencies etc…

- The decrease of the social gap of Telecommunications through the institution of

the universal service.

- The operators of telecommunications try less to make apply penalties, but rather

to obtain the fast levying of the obstacles by using methods and experts in

telecommunications or economy of telecommunications.

- The regulator in telecommunication aims at guaranteeing the equality of chance

between the incumbent operator and new entrant (interconnection, arbitration of

dispute).

WHY A REGULATOR OF TELECOM SECTOR? WHY A REGULATOR OF TELECOM SECTOR? (2/2)(2/2)

Role of regulator (Moroccan case)(1/2)

The ANRT case :• Having accumulated years of expertise and gained the trust of market players, the

intervention of the ANRT, as an regulation authority is distinguished from that of the Competition Council in particular by :

Its objectives: • independence from political power;• Safeguard competition ;• Management of scarce resources (frequencies and numbering);• Concern of efficiency and regional planning, and ensures compliance of access to essential

facilities.

Its tools:

Being able to act directly on prices, and market structures; Qualification an act of anti-competitive does not necessarily require attachment to one of

the practices enumerated in the law, the regulator can better measure the impact of behavior, and conceive it in a larger context;

May proceed by positive incentives, not only by repression of the fraudulent behavior.

Its method :

Timing of effective intervention, as well ex post as ex ante, within a rapid decision making process;

A largest mastery of the fields of action, plus a high degree of specialization and expertise, especially in such complex and changing market (, ANRT was created 12 years before the actual establishment of the Competition Authority );

A legal and economic security guaranteed to operators, particularly by the uniqueness of interlocutor and preservation of gains witch gives trust to it’s intervention ;

Development of dialogue between actors in case of dispute and amicable resolution.

Role of regulator (Moroccan case)(2/2)

Before the law 06-99:

• Act of 30 July 1971 on the regulation and control of prices and conditions of detention and sale of products and goods which aims to provide a framework for setting prices.

Adoption of the law:Promulgated by Dahir No. 1-00-225 of Rabii I 1421 2 (June 5, 2000) promulgating Law No. 06-99 on free pricing and competition. The law has come into force in 2001.September 17, 2001: Approval of Decree No. 2-00-854 adopted in application of that law.

• The law n°55-01 modifying and completing the law of telecommunication grant new power to the ANRT in term of sefeguarding and protection fair competition in the telecom market

THE COMPETITION’S DEPLOYEMENT IN MOROCCON MARKET COMPETITION’S DEPLOYEMENT IN MOROCCON MARKET (4/5)Introduction Of the Law n°06-99

FCC (Federal Communications Commission)

• In the U.S., the Federal Communications Commission (FCC) is the independent regulatory body responsible for overseeing interstate and international communications.• However, in terms of competition issues, it must work in coordination with the Department of Justice U.S. (DOJ) or the Federal Trade Commission (FTC), depending on the relevant sectors and economic impact.• FCC may approve a merger or impose conditions after consultation with the DOJ on competition issues.

Ofcom (Office of Communications)

• In the United Kingdom; regulator OFCOM is having very large skills both in terms of support and content.• Ofcom has, in accordance with the law of 2003, large skills in competition. It work in partnership with the OFT (Office of Fair Trading)• it acts as being the authority responsible for competition for the communications sector.Ofcom's role under the competition law includes rules on anticompetitive agreements and abuse of dominant position stated by the Competition Act of 1998.

SHARING SKILLS BETWEEN COMPETITION AUTHORITY AND REGULATORY AUTHORITY (1/3)

CONCLUSIONCONCLUSION

ANRT ensure the establishment and the promotion of fair competition between operators ;

ANRT foster the development of service in order to respond to the consumer need ;

ANRT use its power according to the legal framework.

The competition pushes all enterprise to the economic efficiency .

Thank You KHAOUJA AhmedKHAOUJA Ahmed

Director of the Competition and the Follow-up of the Director of the Competition and the Follow-up of the Operators in the ANRTOperators in the ANRT