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Mojca Stros, Competition Law Current and Future Challenges Facing In Mojca Stros, Competition Law Current and Future Challenges Facing In-House Counselors and Legal Advisors Electronic (Mobile) Communications Sector MOJCA STROS Senior Adviser for Regulatory and Legal Affairs, Mobitel, Slovenia Introduction Provision of electronic communications and, especially, mobile communications is one of the fastest developing sectors in Europe and the World. However, due to the “public interest” of communications services and communication networks some services are subject to intensive competition regulation, which is implemented at the community (European) level and at national level. Being a legal counsellor for Mobitel d.d., the incumbent public mobile communications provider/network operator in Slovenia, for several years, I have been able to witness several reforms and changes of the electronic communications competition regulation legislation as well as changes in the underpinning principles and main/guiding objectives (of e.c. regulation). This article highlights the main responsibilities, tasks and functions of the in-house legal regulatory counsellors and services over the time, including the past, present and anticipated challenges in the electronic communications regulation on the basis of my past experience and work at Mobitel. Nevertheless most topics described in this article apply to all providers of electronic communication networks and services within the EU and to electronic communication regulation in general. History Mobitel is the largest mobile network operator in Slovenia. Prior to its independence in 1991, Slovenia was a Republic of the Socialist Federal Republic of Yugoslavia. Following the declaration of independence and a short ten-day war, Slovenia became a parliamentary democracy and reformed its legislation on the basis of the former communist legal system. After 13 years of the so-called “transitional period” Slovenia successfully entered NATO and the EU and is about to become the first new member to preside the Community. The communications sector in Yugoslavia was in the hands of the national post and telecommunications incumbent PTT Slovenije, which was later transformed into Telekom Slovenije and Pošta Slovenija. Mobitel d.d. was founded in 1991 as a subsidiary of Telekom Slovenia and the first and, at that time, only national (analogue) mobile network operator on the territory of Republic of Slovenia. Today, Mobitel has approx. 1.3 million pre-paid users and subscribers on its GSM and 3G (UMTS) networks, which amount to a market share of approx. 75%. Mobitel also successfully concluded National roaming agreement with Debitel, the third mobile communications provider, on commercial terms and continues to provide Debitel with network access. Regulatory intervention regarding access to the Mobitel’s network On the first of May 2004 Slovenia became a full member of the European Union and with it came the obligation to adopt the latest EU regulatory package. The new Electronic communication act came into force by the date of Accession. The National Regulatory Authority (NRA) embarked on a market analysis in July 2004. It concluded that the Slovenian telecommunications market is not effectively competitive and as a direct consequence Mobitel was designated a Significant Market Power (SMP) operator. The final decision was made in October 2005. The NRA published it's draft decision on remedies, imposed on Mobitel, in April 2005. There were three remedies proposed: 1. Obligation to provide Access 2. Obligation of non-discrimination 3. Price control obligation According to the price control obligation Mobitel should create a so-called reasonable wholesale price. At the end of July last year the notification to the commission followed. National consultation ran in parallel to the Community Consultation. The Commission made comments on the draft decision at the end of August. International In-house Counsel Journal Vol.1, No.2, November 2007 Mojca Stros, Competition Law The main points of the Commission comments were that it is unclear how to assess the reasonableness of the proposed rates. According to the commission comments price regulation should be used only when commercial negotiations fail. NRA summarised in it's decision that Mobitel's high market share was used as a reason behind designating the operator with SMP. Mobitel entered court proceedings against the NRA's decision, the court decision is still pending. The appeal is based on the statement, that the results of market analyses didn't show a lack of effective competition. Mobitel made comments on the draft decision, but NRA did not take them into consideration. Mobitel believes that the remedies are unfair and will not contribute to the competitiveness of the market, which is after all the main aim of the claim. There should be detailed market analysis provided before the decision of the NRA. Imposed obligation favour MVNO even prior to provide a regulatory definition of their rights and obligations. Our position is that market of Access and Call origination is effectively competitive and therefore should be removed from the regulatory intervention. Over-regulation reflects negatively in the investment policies of the operators. Input in the Review of European electronic communications regulatory framework In general, Mobitel considers the existing regulatory framework as a solid basis for future regulation of electronic communications and services, where such ex-ante regulation is justified. However, the regulatory framework should be further streamlined and improved. Most importantly, the regulatory framework should improve the existing mechanisms aimed at uniform application of sector-specific rules and rules on competition in particular. Conclusion Being an adviser for regulatory affairs to regulated mobile operator is a big challenge. A range of internal Regulatory compliance strategies are revised and developed on almost a daily basis, covering the full range of the company's business activities. A business such as a public mobile phone services has to be innovative or die. However it is not allowed to abuse its market position nor break the rules or it will suffer regulatory remedies. Therefore a regulatory compliance team within the mobile incumbent operator has to be creative and hardworking all the time. They have to find the way to make new ideas a reality in a regulatory compliable way. Mojca Štros joined Mobitel in 1997 as head of Legal Department and was appointed senior adviser for regulatory affairs in 2001. Currently Mojca is responsible for the regulatory compliance of Mobitel's business activities and actively participates in working groups with other operators and the national regulator authority in the initial drafting of regulatory legislation. She has been a member of the inter-operator working group for the recent implementation of mobile number portability. Her main duties comprise of providing legal assistance for the drafting and the negotiation of inter-operator contracts. After graduating in Law at the University of Ljubljana, Mojca Štros achieved bar status and held a successful practice in the district court of Ljubljana. She continued her career at the government administration, where she participated in the drafting of regulations for the newly independent Slovenia. Mobitel is a Slovenian mobile telecommunications operator spreading the use of mobile telecommunications in Slovenia with state-of-the-art technology and service solutions, many of which are the result of the company in-house development. Through its operation the company aims to provide the most cutting-edge technologies and services to mobile telecommunications users at friendly prices and to continually introduce global novelties. Satisfaction of the users is reflected in the large number of Mobitel network users and their commitment among other things. Mobitel is the leading mobile operator in a country with one of the highest penetration rates in Europe. International In-house Counsel Journal Vol.1, No.2, November 2007 .
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