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Work item:
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D.DynamicTariff
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Subject/title:
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Impact of Dynamic Tariffing on Market Competitiveness
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Status:
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[Carried to next study period]
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Approval process:
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TAP
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Type of work item:
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Recommendation
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Version:
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-
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Equivalent number:
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-
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Timing:
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-
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Liaison:
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-
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Supporting members:
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Chad, Gambia, Malawi, Niger, Uganda
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Summary:
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While the dynamic tariffing rates are attractive to consumers and at the same time operators deem them competitive and boosting their revenues, national regulators have a challenge in how they can be treated. The relative low tariffs derived from dynamic tariffing systems are in some cases considered to price out new entrants and relatively small operators who cannot compete with the incumbent dominant and SMP operators. This can lead to predatory pricing by operators with high market share/dominancy.
As a result, regulators in some countries have applied price caps on the levels of dynamic tariffs and at the same time provide a period during which operators should apply them. Another challenge posed by the dynamic tariffs are the continuous changes in rates over a period of time. Regulators should have ideal information to make good judgment of the reasonableness of the rates being offered by operators and whether or not they are cost based.
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Comment:
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-
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Reference(s):
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Historic references:
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Contact(s):
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| ITU-T A.5 justification(s): |
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First registration in the WP:
2016-03-09 16:26:14
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Last update:
2021-06-11 10:11:19
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