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CASE M.8792 - T-Mobile NL/Tele2 NL

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CASE M.8792 - T-Mobile NL/Tele2 NL EUROPEAN COMMISSION DG Competition CASE M.8792 - T-Mobile NL/Tele2 NL (Only the English text is authentic) MERGER PROCEDURE REGULATION (EC) 139/2004 Article 8 (1) Regulation (EC) 139/2004 Date: 27/11/2018 This is a provisional non-confidential version. The definitive non- confidential version will be published as soon as it is available. This text is made available for information purposes only. A summary of this decision will be published in all EU languages in the Official Journal of the European Union. Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets. EUROPEAN COMMISSION Brussels, 27.11.2018 C(2018) 7768 final PUBLIC VERSION COMMISSION DECISION of 27.11.2018 declaring a concentration to be compatible with the internal market and the functioning of the EEA Agreement (Case M.8792 - T-Mobile NL/Tele2 NL) (Only the English version is authentic) TABLE OF CONTENTS 1. Introduction ................................................................................................................ 11 2. The Parties and the Transaction ................................................................................. 12 3. Union dimension ........................................................................................................ 12 4. The procedure ............................................................................................................. 13 5. The investigation ........................................................................................................ 14 6. The Dutch mobile telecommunications sector ........................................................... 15 6.1. Key metrics ................................................................................................................ 15 6.1.1. Data sources ............................................................................................................... 15 6.1.2. Technological development ....................................................................................... 16 6.1.3. Retail mobile telecommunications services in the Netherlands ................................. 17 6.1.4. Retail customer groups ............................................................................................... 24 6.2. Customer switching .................................................................................................... 25 6.3. Mobile telecommunications service providers in the Netherlands ............................ 25 6.3.1. MNOs ......................................................................................................................... 25 6.3.1.1. KPN ............................................................................................................................ 26 6.3.1.2. VodafoneZiggo .......................................................................................................... 26 6.3.1.3. TMNL ........................................................................................................................ 27 6.3.1.4. Tele2 NL .................................................................................................................... 28 6.3.1.5. Spectrum holdings by the MNOs ............................................................................... 28 6.3.1.6. Mobile telecommunications infrastructure ................................................................ 29 A. Site construction ......................................................................................................... 29 B. Network sharing ......................................................................................................... 32 6.3.1.7. Agreements between the MNOs ................................................................................ 33 6.3.2. Other telecommunications services providers ........................................................... 34 6.3.2.1. Simpel ........................................................................................................................ 34 6.3.2.2. Youfone ...................................................................................................................... 35 6.3.2.3. Other MVNOs ............................................................................................................ 35 6.3.2.4. Regulatory regime regarding MVNOs ....................................................................... 36 6.4. Convergence and multi-play offers ............................................................................ 36 6.5. Distribution system .................................................................................................... 39 6.6. Competitive conditions .............................................................................................. 40 6.6.1. Competitive parameters ............................................................................................. 41 6.6.2. Overview of price related competition ....................................................................... 42 2 7. Relevant markets ........................................................................................................ 43 7.1. Retail mobile telecommunication services ................................................................. 43 7.1.1. Product market definition ........................................................................................... 44 7.1.1.1. Retail mobile and fixed telecommunication services ................................................. 44 A. Commission precedent ............................................................................................... 44 B. The Notifying Party's views ....................................................................................... 44 C. The Commission's assessment ................................................................................... 44 7.1.1.2. Mobile services and WiFi .......................................................................................... 44 A. Commission precedent ............................................................................................... 44 B. The Notifying Party's views ....................................................................................... 45 C. The Commission's assessment ................................................................................... 45 7.1.1.3. Mobile telecommunications services and OTT services ............................................ 45 A. Commission precedent ............................................................................................... 45 B. The Notifying Party's views ....................................................................................... 46 C. The Commission's assessment ................................................................................... 46 7.1.1.4. Private and business customers .................................................................................. 46 A. Commission precedent ............................................................................................... 46 B. The Notifying Party's views ....................................................................................... 47 C. The Commission's assessment ................................................................................... 47 (i) Demand side ............................................................................................................... 47 (ii) Supply side ................................................................................................................. 50 (iii) Conclusion.................................................................................................................. 51 7.1.1.5. Prepaid and postpaid .................................................................................................. 51 A. Commission precedent ............................................................................................... 51 B. The Notifying Party's views ....................................................................................... 51 C. The Commission's assessment ................................................................................... 51 7.1.1.6. SIM-only subscriptions/handset subscriptions ........................................................... 52 A. Commission precedent ............................................................................................... 52 B. The Notifying Party's views ....................................................................................... 52 C. The Commission's assessment ................................................................................... 52 7.1.1.7. Technology: 2G, 3G, 4G ............................................................................................ 52 A. Commission precedent ............................................................................................... 52 B. The Notifying Party's views ....................................................................................... 52 C. The Commission's assessment ................................................................................... 52 7.1.1.8. Voice, SMS/MMS and data services ......................................................................... 53 A. Commission precedent ............................................................................................... 53 3 B. The Notifying Party's views ......................................................................................
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