Vodafone escapes fine over dominant position

TIRANA, Jan. 28 – Albania’s Competition Authority says Vodafone Albania dominant position in the Albanian mobile telephony market has caused problems to competition through its strategy of a huge gap between on-net and off-net calls. The Authority says Vodafone has closed its subscribers in its own network by applying huge differences in on-net calls through its Vodafone Club tariff plan and even higher rates for off-net calls to other operators.
The Competition Authority has called on the Electronic and Postal Communications Authority to take measures so that Vodafone reduces its on-net and off net call rates. The Authority, which has imposed no fine on Vodafone, also recommends that interconnections should further reduce for smaller operators to increase market competition.
Citing an abuse of dominant position by market operators, the Competition Authority launched a preliminary enquiry into the mobile telephony market in January 2013 after observing signs of limited competition. In a decision taken in late December 2012, the Competition Authority says it has launched a preliminary enquiry into the pre-paid mobile telephony market after observing potentially anti-competitive behaviour by market operators which could target or result in limited free competition.
Data show Vodafone increased its revenue market share to 56 percent in 2012, up from 52 percent in 2011 and 48 percent in 2010. Vodafone, which has a 36 percent share in mobile phone subscribers, saw its revenue increase to 23 billion lek (Euro 159 million) in 2012, up from 20 billion lek in 2011, but yet lower compared to its peak rate of around 25 billion lek in 2008.
Vodafone Albania, part of Vodafone Group Plc, launched its GSM services in Albania in August 2001. In November 2010, Vodafone became the first operator to offer 3G service in Albania after winning a 15-year license for 31.4 million Euros.