The Belgian Competition Authority’s College of Prosecutors dismisses complaints against telecom operator for abusing its dominant position in the market for fixed telephony, due to margin squeeze on its "Happy Time offer" (Tele2 / Belgacom)

I. The Parties Belgacom S.A. is the incumbent operator on the Belgian telecom market and former historical operator. In 2005, Tele2 was a 100% subsidiary of a Swedish company. In the meantime, this company was sold to KPN, a Dutch company, in 2007. II. The Facts Access to the telecommunication market for new competitors, like Tele2, requires important investments. A step-by-step development strategy (an investment ladder) is therefore recommended to develop a client base and an alternative network. In this particular case, operator uses the CS/CPS model (“Carrier Selection”/”Carrier Preselection”), also known as the indirect access model. The CPS operator stands at the beginning of the investment ladder: it specializes in voice telephony, with no or little investment and no network of

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Authors

  • Liège University (Liège)
  • Covington & Burling (Brussels)

Quotation

Alexandre Defossez, Daniel Muheme, The Belgian Competition Authority’s College of Prosecutors dismisses complaints against telecom operator for abusing its dominant position in the market for fixed telephony, due to margin squeeze on its "Happy Time offer" (Tele2 / Belgacom), 29 November 2012, e-Competitions November 2012, Art. N° 51821

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