Nathan provided multiple services to Vanuatu’s telecommunications regulator from 2011-2013: analyzing market dominance, drafting guidelines for competition, investigating possible anti-competitive pricing, and advising on interconnection rates.
This work entailed such activities as gathering and examining financial and market data, synthesizing information from multiple jurisdictions, and devising methods for assessing pricing behavior. Nathan provided these specific services to the Telecommunications and Radiocommunications Regulator (TRR) of Vanuatu: Competition Guidelines, 2011.
Nathan experts trained the TRR on the economics of competition regulation and drafted competition guidelines. The guidelines addressed how the regulator should investigate allegations of anti-competitive practices. The TRR approved the guidelines in August 2011 after public consultations.
The guidelines are available here.
Review of Digicel’s Dominance Determination, 2011-2012
Nathan analyzed various issues, including Digicel’s financial performance, historical subscriber data, network coverage, market share, market structure, and barriers to entry. Using that information, Nathan drafted major parts of the TRR’s decision that Digicel dominated markets for retail mobile services and wholesale call termination.
Findings are described here.
Benchmark Study of Interconnection Rates, 2012
The TRR, anticipating a dispute between the two main service providers over interconnection rates, asked Nathan for advice on appropriate interconnection rates for termination of mobile and fixed calls. Nathan presented a methodology for conducting a benchmark analysis of interconnection rates consistent with Vanuatu’s 2009 Telecommunications Act No. 30.
Nathan then presented the results of a benchmark analysis of mobile and fixed termination rates from 24 jurisdictions comparable to Vanuatu and issued a recommendation.
Anti-Competitive Price Investigation, 2012-2013
Nathan provided economic advice to the TRR in its investigation of possible anticompetitive pricing by a major telecom service provider, including possible margin squeeze and predatory pricing in several product markets.
A Nathan expert proposed market definitions for the various services along with a method to assess whether margin squeeze or predatory pricing may have occurred.