Nathan worked closely with the Liberian Telecommunications Authority (LTA) to analyze competition in the Liberian telecommunications market in order to define and identify the relevant retail and wholesale markets. This analysis resulted in the definition of three retail markets: (a) mobile voices/SMS access and call service, (b) mobile broadband, and (c) fixed broadband. Nathan also found four relevant wholesale markets: (a) call termination on each mobile operator’s own network, (b) local fiber access, (c) dedicated fiber transport, and (d) fiber optic international connectivity.

Next, we examined whether there were any operators with significant market power (SMP). In the retail markets we identified one dominant mobile network operator in the market for voice/SMS services. In the wholesale markets we identified each of the three mobile operators as dominant in the market for call termination on their own networks, and the submarine cable company of Liberia in the market for fiber optic international connectivity. Finally, we recommended ex ante remedies for each dominant service provider identified.

Nathan Associates also drafted (a) the competition guidelines, (b) the regulations for competition matters, and (c) the imputation test guidelines. The competition guidelines explained how the LTA will implement PART VII of the Telecommunications Act. These guidelines spell out the approach the LTA will follow in defining relevant markets and assessing significant market power, and also establish a typology of abuse of dominance and outline an approach to investigating those allegations. The guidelines further establish a typology of other anti-competitive practices by any firm (not necessarily dominant), and create a process for merger review.

The regulations on competition matters defined and regulated the conduct of competition-related proceedings. The imputation test guidelines explained the approach LTA will follow when investigating allegations of margin squeeze against a dominant, vertically integrated service provider. Nathan also provided capacity building to the LTA in assessing markets and ensuring competition.

Details

Office

Arlington

Client

WARCIP Liberia Project

Dates

2015 - 2015

Country

Liberia

Relevant Services

Competition & Economic Regulation, Economic & Regulatory

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