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following are summarized the main problems resulting from a critical analysis of the CommissionImpact Assessment:1. The Commission analysis is mainly focused on the too high international roaming chargesbut does not analyze in-depth the dynamic process that leads to the definition of this prices.Already the DG Competition, in their inquiry identified in the Inter-Operator Tariff at thewholesale level the main competitive problem 70 .2. The Commission does not properly consider that roaming is one of a bundle of services thata customers buy from a mobile operator. This means that a change in the tariff of one of thisservice can cause a rebalancing of the tariffs of other, more important services; in particularit can affect the market for domestic calls. A restructuring of the tariff in this sense imposesa cost to the majority of consumers, while the benefit of the proposal are reserved only to aminority of consumers. This wrong way to consider the cost and benefit of the proposalcould hide the intention to use a economic tool to address a different problem respect that ofan efficient regulation: the wiliness to create a pan-European market for electroniccommunications.3. Roaming I regulation appears out of context because it does not take into account the realdynamics of the market that it affects. For example, in imposing a wholesale price regulationthe IA did not take into account the fact that the international roaming traffic is mainlyinternalized within pan-European groups.4. The Commission did not analyze correctly the possible reduction of total welfare: in fact aprice cap on retail charge may be reduce the welfare if the reduction in firm profits is notoffset by increase in consumer surplus.70 In the Working document on the initial findings of the sector inquiry in mobile roaming charges the DG Competitionconsidered the IOTs as an element able to promote a jointly dominant position in the wholesale market for internationalroaming services; the DG required for this reason a more deeply analysis of the market, in order to evaluate if there areother structural element able to strengthen this hypothesis.74
These errors highlight the necessity in conducting an IA, especially with regard the proposal thatrepresent a newness, to take proper into account the assessment of how alternative form ofeconomic regulation are likely to affect the incentives and conduct of consumers and marketplayers. The IA, if properly used, is a useful tool to understand the dynamics of the market and thecorrect and efficient way to address them.2. Second Case Study – the Impact Assessment related to the Creation of an EuropeanRegulator for Electronic CommunicationsIn this second case study the IA was implemented by Commission in order to evaluate, in thegeneral review of the Regulatory framework for electronic communication, the need of an EuropeanRegulator for electronic communication able to assure a more degree of compliance to the Europeanlegislation. The idea to create a new entity was analyzed in two different IA and with two differentresult: the first document considers the new entity unable to reach the objective of more complianceat lowest cost possible, while for the second document the European Regulator was the best optionin order to consolidate the Single market.The questions which I try to answer in this section is: how is it possible that the use of the sameeconomic method produces a different outcome about the same option in two different documentswithin a 12-month timeframe? In which way this tool was used in the specific context? It is a toolfor “evidence-based policy decision” or an instrument to justify decision adopted against theevidence? The tool that I use in order to answer these questions is a strict analysis of the ImpactAssessment conducted by the Commission, taking in account the contest, both institutional andeconomic, in which this IA was implemented.2.1 The Regulatory Model for Electronic Communication in EUThe 2002 framework for electronic communication is aimed to create a single market for theprovision of communication services thanks to the creation of an institutional context able to favorthe cross-border investment and the development of new technologies.75
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LUISS GUIDO CARLIDOTTORATO DI RICER
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a form-based approach 4 . In partic
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Guidance Paper is the result of a r
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In the following section are analyz
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The rebate schemes were individuali
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The analysis takes into considerati
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documents or data that the dominant
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which apply only to some type of cu
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to capture. Then it compares these
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Page 46 and 47: IntroductionRegulatory Impact Asses
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