မဂၤလာႏွစ္သစ္မွာ က်န္းမာေပ်ာ္ရႊင္ၾကပါေစ

Wednesday, June 12, 2013

Mexico, Myanmar Move to Change Service Provider Market Share

June 11, 2013  
By Gary Kim, Contributing Editor  

Most communication markets are relatively stable over time, and change incrementally based on the abilities of market contestants. But there is another way markets can change, namely by regulatory intent.
So it is that Mexico and Myanmar are among the few countries now in the process of creating conditions for major reshaping of their communications markets.

Myanmar will award two new telecommunications licenses, doubling the number of providers from two to four.

Mexico has passed laws creating a new framework for competition in the telecommunications and TV broadcast industries that has the express aim of changing market power in Mexico’s communications and media businesses.

Both initiatives are relatively unusual, in that the new policies directly aim to change the market structure of their communications markets.

It is too early to say whether there is a chance for something like the 1984 breakup of the AT&T (News - Alert) Bell system, and regulators probably would prefer something less traumatic, such as changing interconnection and other rates to favor smaller competitors.

The objective of the new Mexican and Myanmar regulatory changes is to reduce market share held by the current market leaders, which is why such times of change are important.

For a period of time, upstarts and smaller competitors will have government help and encouragement to take market share from the leading providers in the broadcast TV and telecommunications business.

At least initially, regulators are likely to try new network unbundling and interconnection rates that will favor competitors. Just how much share could change is the big question.

América Móvil has 80 percent share of fixed lines and also 70 percent share of mobile accounts as well. Televisa likewise has about 70 percent share of the TV broadcasting business.

In the U.S. market and in Western Europe, competition has in many cases reduced the former market leader’s share to as little as 30 percent to 35 percent.

But that required asset divestitures. In the absence of such asset disposals, some of the existing competitors might expect to gain perhaps 10 percent to 15 percent share.

One way or the other, regulators will take actions to reduce the market share held by the leaders of the fixed line, mobile and TV broadcast industries. That, of course, is the whole point of inducing new competition: the leaders lose market share.

http://www.tmcnet.com/topics/articles/2013/06/11/341433-mexico-myanmar-move-change-service-provider-market-share.htm

0 comments:

 
Design by Wordpress Theme | Bloggerized by Free Blogger Templates | coupon codes