Isle Of Man Seeks Telecoms Competition

by Jason Gorringe, Tax-News.com, London

23 June 2011

The Isle of Man Communications Commission has commenced a consultation with industry stakeholders as part of its review of the environment for telecommunications companies in the Isle of Man, and proposed regulations to enhance competition.

The Commission has undertaken first round reviews of all telecommunications markets in the Isle of Man. The reviews identified and analysed retail telecommunications markets and their corresponding wholesale markets. The markets identified are to do with access to fixed and mobile networks, and to services provided over fixed and mobile networks.

The Commission found potential competition problems in the retail fixed markets, wholesale fixed markets, and mobile markets, and has proposed regulatory remedies appropriate to each market.

Provisions for placing additional obligations on operators found to have significant market power (SMP) are contained in licences issued under section 5 of the Telecommunications Act 1984 (of Tynwald).

The Competition Commission said:

"In considering regulatory remedies in the fixed markets, our view is that Manx Telecom has significant market power and therefore there is a need for well-functioning wholesale markets, with products available to all, because competition in the retail markets depends on this."

"The remedies proposed are based on the principle that a competing licensed operator should be able to replicate Manx Telecom’s retail offers. A competing operator will be able to request wholesale products from Manx Telecom, and this offers the opportunity for competing operators to introduce much greater innovation in the retail products they can supply to businesses and consumers. Requests must be made on the basis of a serious business proposition – Manx Telecom will not be obliged to develop a series of wholesale products for which there is no likely market."

"Other remedies will address how Manx Telecom, as a proposed SMP operator, is expected to conduct itself. These will require Manx Telecom not to discriminate in the services it offers, to provide adequate information about its products, to act transparently in its dealings with other operators, and to ensure that its retail operation does not benefit unduly compared with other retail operators."

"In considering regulatory remedies in the mobile markets, the Commission is addressing the need for both mobile operators, Manx Telecom Limited and Cable & Wireless Isle of Man Limited (trading as Sure), to ensure that their charges for handling each other’s calls and data (termination rates) continue to decrease, and that they do not use their competitive advantage to harm operators in other retail markets."

On conclusion of the consultation, the Commission plans to introduce regulation 'to support a well-functioning telecommunications sector which can deliver high quality services'.

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