Ex ante margin squeeze tests in the telecommunications industry: What is a reasonably efficient operator?

Competition and antitrust in Internet markets

“…While most economists argue for the equally efficient operator test (see, e.g., Bouckaert and Verboven, 2004;Gaudin and Saavedra, 2014), Clerckx and De Muyter (2009) defend the reasonablyefficient competitor standard and emphasize that incumbent network operators tend to have inherited their positions from a Government enterprise or other forms of protection.…”

The political economy of margin squeeze liability in the Turkish telecommunications market: A comparative assessment

“…14 Wanadoo España v. First reason of using is "to set downstream price floors whenever the vertically integrated incumbent is dominant in both the downstream and upstream markets" (Gaudin and Saavedra, 2014). Second, it might be used in a competitive retail market as a regulatory tool for the wholesale market.…”

“…Second, it might be used in a competitive retail market as a regulatory tool for the wholesale market. Third reason is to evaluate replicability of unregulated retail offers of vertically integrated operator (Gaudin and Saavedra, 2014). 17 Although, former regulatory rules implicitly allowed ICTA to conduct ex post margin squeeze examination, ICTA has not conducted yet.…”

“…08-41/556-209. 26 See Gaudin and Saavedra (2014) for the authorities' measurement of retail costs and which cost methods are used in imputation test by the NRAs in the scope of ex ante margin squeeze analysis. 27 TCA investigates whether or not the subscribers gained by investigated tariffs has impact to increase total number and rate of vertically integrated firm's subscriber.…”

“…During the last decade, margin squeeze cases have increased in the US, EU and Turkish telecommunications markets (Gaudin and Saavedra, 2014). 1 There are three main reasons behind the increasing number of the cases.…”