Session
Computer Science and Communication Engineering
Description
T-Mobile’s abusing of its dominant position is referring to the postpaid tariff models Relax and Relax Surf regarding the residential customers and the postpaid tariff models Business and Business Surf regarding its business customers. The prominent price offer to consumers is a case of predatory prices squeeze identified as a way of preventing or restricting competition in theory and practice. T-Mobile provides services at unreasonably low prices, prices below the level of expenditures necessary for their provision, as it is specific case with the postpaid tariff models Relax and Relax Surf regarding the residential customers and the postpaid tariff plans Business and Business Surf regarding the business customers. Providing predatory prices is anti-competitive commercial strategy used by a certain dominant enterprise by dumping its prices on a certain relevant market to a price level forcing its competitors to leave the market. The interconnection costs or the cost amount of call termination in their own network or in other operator’s network regardless if it is fixed or mobile are determined by the Agency for Electronic Communications. The major element of the market economy is the free and effective competition. There is not a market economy without a competition as there is not a competition without a market economy. The competition in the market is a simple and effective means ensuring that the products and the services are offered to the customers with an excellent quality and competitive prices. By providing such services with predatory prices, T-Mobile intends to discipline its competitors, to protect and enhance its extended dominant market power on a long-term period. Disabling the competitiveness of the other operators and the inability to replicate the offer provided by an operator with significant market power is undoubtedly a risk leading to competition’s elimination on a long term. Thus, T-Mobile destroys the competition in the field of mobile telephony, taking advantage of its significant market power and dominant market position of the two entities, by providing conditions to which the other market participants are not able to respond due to the expenditure services structure. The competition and the free markets are the main engines of productivity, efficiency, product development, innovation and appropriate pricing. The competitive markets stimulate better technologies and technological development in order to provide products and services to their customers with high quality and prices reflecting the efficient producers’ expenditures.
Keywords:
mobile operator, Macedonia, agency for electronic communication, tariff models
Proceedings Editor
Edmond Hajrizi
ISBN
978-9951-550-14-7
First Page
29
Last Page
35
Location
Durres, Albania
Start Date
7-11-2015 9:00 AM
End Date
7-11-2015 5:00 PM
DOI
10.33107/ubt-ic.2015.85
Recommended Citation
Arsov, Boris, "The mobile telecom operator T-Mobile Macedonia AD Skopje abuses its dominant position harmful for the mobile telecom operators ONE and VIP in the telecom market" (2015). UBT International Conference. 85.
https://knowledgecenter.ubt-uni.net/conference/2015/all-events/85
The mobile telecom operator T-Mobile Macedonia AD Skopje abuses its dominant position harmful for the mobile telecom operators ONE and VIP in the telecom market
Durres, Albania
T-Mobile’s abusing of its dominant position is referring to the postpaid tariff models Relax and Relax Surf regarding the residential customers and the postpaid tariff models Business and Business Surf regarding its business customers. The prominent price offer to consumers is a case of predatory prices squeeze identified as a way of preventing or restricting competition in theory and practice. T-Mobile provides services at unreasonably low prices, prices below the level of expenditures necessary for their provision, as it is specific case with the postpaid tariff models Relax and Relax Surf regarding the residential customers and the postpaid tariff plans Business and Business Surf regarding the business customers. Providing predatory prices is anti-competitive commercial strategy used by a certain dominant enterprise by dumping its prices on a certain relevant market to a price level forcing its competitors to leave the market. The interconnection costs or the cost amount of call termination in their own network or in other operator’s network regardless if it is fixed or mobile are determined by the Agency for Electronic Communications. The major element of the market economy is the free and effective competition. There is not a market economy without a competition as there is not a competition without a market economy. The competition in the market is a simple and effective means ensuring that the products and the services are offered to the customers with an excellent quality and competitive prices. By providing such services with predatory prices, T-Mobile intends to discipline its competitors, to protect and enhance its extended dominant market power on a long-term period. Disabling the competitiveness of the other operators and the inability to replicate the offer provided by an operator with significant market power is undoubtedly a risk leading to competition’s elimination on a long term. Thus, T-Mobile destroys the competition in the field of mobile telephony, taking advantage of its significant market power and dominant market position of the two entities, by providing conditions to which the other market participants are not able to respond due to the expenditure services structure. The competition and the free markets are the main engines of productivity, efficiency, product development, innovation and appropriate pricing. The competitive markets stimulate better technologies and technological development in order to provide products and services to their customers with high quality and prices reflecting the efficient producers’ expenditures.