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EU Must be Mobile Merger Friendly – GSMA

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The GSMA on Monday called on Europe’s antitrust watchdogs to consider the investment incentives created by mergers between mobile operators, rather than focus on short-term price implications.

“Consolidation can boost investment in next-generation mobile infrastructure and delivery of mobile broadband to rural areas,” argued Anne Bouverot, director general of the GSMA.

In a study carried out on its behalf by Frontier Economics, the industry body claimed that there is little evidence to suggest that four-player markets have produced lower prices than three-player markets over the long term.

It noted that competition authorities rely on short-term forecasts derived from the gross upward pricing pressure index (GUPPI), which measures the incentive of the merged entity to raise prices.

The GSMA argues that this method does not account for every factor that influences prices in the mobile market, such as the amount of available network capacity, and the cost efficiency gains that could be derived from a merger. Original post at Total Telecom

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Wahengbam Rorrkychand

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