With just two nationwide networks currently, Nkom determines the need to maintain access remedies imposed on Telenor for a further three years
Nkom considers that three networks are needed to ensure sustainable competition
On 9 April 2024, Nkom completed its review of the market for access and call origination on public mobile networks in Norway. Nkom’s analysis shows that Telenor still has a “special position” in the Norwegian market as the largest player with strong profitability and customer loyalty, considering this gives rise to actual and potential competition issues – e.g. denial of access and price discrimination. To ensure there is sustainable infrastructure-based competition, Nkom considers there is a need for three mobile networks that compete for retail customers and also provide wholesale access to MVNOs on competitive terms. It notes that Ice (the third and smallest mobile operator) is expanding its network, but that it remains underdeveloped in more rural areas. According to Kamilla Sharma (Department Director, Nkom), the market needs a mix of large and small operators to provide consumers and businesses with high quality and affordable services.
Telenor must offer other network owners access to its masts, as well as host MVNOs looking to compete downstream
Having once again designated Telenor with significant market power in the wholesale mobile market, Nkom has imposed several obligations designed to address its concerns and increase competition, in particular by facilitating the growth of Ice’s network. The regulator is requiring Telenor to lease its masts to other network owners on regulated terms, including pricing. Nkom considers this one of the most important obligations to achieve an efficient development of the third mobile network in Norway, with colocation of equipment also positive as it constrains the sector’s environmental footprint. While colocation has been common in Norway, the regulator suggests Telenor would continue to be required to offer it should the operator spin-off its towers into a standalone company – an industry trend Nkom is aware of and indicates it is following closely. To ensure service competition and innovation at the retail level, Nkom has determined that challengers that do not have their own mobile infrastructure will be given the right to rent access to Telenor’s network. This MVNO access obligation is imposed in conjunction with remedies for non-discrimination, accounting separation and price control (the latter being subject to a ‘margin squeeze’ test).
Norway is one of few European countries to regulate the wholesale mobile access market
Though Nkom’s objective is for the market to function well without regulation in the future, it considers that sector-specific rules continue to be required for a further period, noting that obligations will apply for three years (rather than five years under a typical market review timeframe). According to our Mobile Telecoms Tracker, Norway is the only European country of the eight we’ve benchmarked that currently regulates the wholesale mobile market – which was formerly Market 15 of the EC’s 2003 Recommendation of markets susceptible to ex-ante regulation. The only regulator in the EU that has sought to do so in recent years was the CTU in the Czech Republic; however, the EC disagreed with the CTU's market analysis and adopted a decision requiring it to withdraw a notified draft measure proposing O2, T-Mobile and Vodafone offer regulated wholesale mobile access services to MVNOs.
