PTA evaluates industry stats to identify the SMP (Significant Market Player or Significant Market Power), periodically; usually on yearly basis. Being the largest cellular company, Mobilink has retained its status of SMP for last many years – and it is anticipated that it will continue to be the leader (with a lead of over 9 million customers from its nearest competition) for next year as well.
Industry sources have confirmed us that PTA is in the process of identifying the SMP (as per its yearly practice); however, experts believe that Telenor is too far from Mobilink to snatch its SMP status.
Also to note that it’s not only number of subscribers or market share that determines the SMP, but other factors, including but not limited to, revenues, assets, employees, number of calls, ARPU and the market influence depicts the SMP for cellular market.
It merits mentioning here that as per regulation (Mobile Cellular Policy):
- An operator shall be presumed to have significant market power when it has a share of more than twenty-five per cent of a particular telecommunication market. The relevant market for these purposes shall be based on sector revenues.
- The Authority may, notwithstanding above-rule, determine that an operator with a market share of less than twenty-five per cent of the relevant market has significant market power. It may also determine that an operator with a market share of more than twenty-five per cent of the relevant market does not have significant market power.
- In each case, the Authority shall take into account the operator’s ability to influence market conditions, its turnover relative to the size of the relevant market, its control of the means of access to customers, its access to financial resources and its experience in providing telecommunication services and products in the relevant market.