Restricted - Confidential Information© GSM Association 2014All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy
Competition law issues in the Internet economy – dealing with disruption
© GSM Association 2014 2
Overview
The GSM Association
Collaboration v Competition
Disruptive Competition
Disruption in the mobile industry
© GSM Association 2014
The GSM Association
3
Public Policy and AdvocacyIntelligence
Standardisation Agreements and Technical SpecificationsMobile for Development
Industry Events and AwardsJoint R&D in new and converging markets
Rapporteur
Members
Full Members:
800+ operators in
220 countries
Associate Members:
250 vendors
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Collaboration v Competition
Efficiencie
s and economies of scale
Inter-operator v external
competition
Art 101 (3)Indispensibl
e
Emerging, adjacent
and converging
markets
Market definition
s
Burden of proof and economic evidence
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Disruptive Competition
Evolution v Revolution
Inefficiencies &
opportunities
Consolidation & Merger
Control
Disrupting the
disruptors
From disruption
to dominance
Disruption and long
term investment
Role of Competition
Policy
Regulation &
Innovation
Barriers to Entry?
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Dumb Pipes or
innovative Service Providers
?
Competition or
Partnership?
Embracin
g
Innovatio
n or
Investing
in NGN?
Mobile Network Operators
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Disruption in the Mobile Industry
The smartphone era is now evolving to a digitised sharing economy where new entrants can disrupt established industries
Implications of next wave
The fourth computing era – connecting physical and digital worlds
Healthcare, Education , others… all goods and services!
Microprocessor, PC, software
Era
Driver
Co
mp
anie
s
Internet Protocols
Smartphones, APIs
APIs, Big Data, New Protocols
1980-2000PC:Revolutionised productivity
2001-2007Information age:Organised world’s information
2008-PresentSmartphones:Unbundling of comms
Disruption moves from comms to goods and services
Early examples include transport (Uber) and accommodation (AirBnB)
Growth is captured by firms that own service discovery (Uber)
Such firms leverage APIs and protocols to scale exponentially
MNOs are enabling growth through APIs and strategic partnerships rather than developing own services
Present-2020Connecting physical and digital worlds
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Connectivity Players
Cable/ISPsMNOs Converged
Option not mutually exclusive
47.7
39.4
2018
12.2
328.6
340.8
2014
8.3
Hotspot installed, millions
Community Hotspot
Commercial Hotspot
Infrastructure approach
Partnership with Wi-Fi
networks or aggregators
Hybrid Wi-Fi (network is
part owned, part in
partnership
Own/build Wi-FI
Option not mutually exclusive
Rapid Wi-Fi hotspot growth and advent of carrier grade Wi-Fi could disrupt mobile
Strategies will depend on the nature of an operator’s network and infrastructure approach
WiFi v Mobile