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| 74 "Virtual Reality: from resellers to MVNOs. Are virtual operators here to stay? Business Services, 27 Feb 01 by: Veronika Bocarova, edgecom. Available at http://www.mobilestart.com/articles.asp?internal=894 75 Ovum defines ‘enhanced service providers’ to be organisations that resell the service of a mobile operator and provide additional services, but do not issue their own SIM cards (although they may re-badge the operator’s SIM cards). Enhanced service providers must have a partnership with a physical network operator. They can issue that operator’s SIM cards although they market services independently of it. 77 “Who will win the race for mobile revenues?”, Communications Week, 4 June 2001. 78 The retail-minus avoidable cost approach can be designed to promote efficiency, by removing from the wholesale price, retail costs that can be expected to be avoidable over the long run if the network owner was not providing a retail service. Conceptually, such avoided costs consist of three basic components: the long run incremental costs that an efficient provider of the retail function would incur including, among other things, elements of the retail price for the network subscription, the cost of the radio facilities linking the handset to the base station and any fixed network components which provide services allowing any-to-any connectivity between mobile customers and fixed network customers, such as the local loop any additional costs the network owner incurs in the provision of retail services that are attributable to production inefficiencies any excess economic profit (i.e. monopoly mark up) earned by the network owner at the retail stage in the provision of the retail service. 79 European Commission, The Introduction of Third Generation Mobile Communications in the European Union: State of Play and the Way Forward, COM(2001)141 final, Brussels, 20.3.2001. 80 “EU’s Monti repeats concerns over 3G network sharing”, Mobile & Satellite, 9 May 2001. 81 TAP3 has special characteristics to make it simpler and easier for global roaming operators to exchange billing information between them. Some special features of the new billing exchange include the following: Internet services of Fixed Line type quality (GPRS and HSCSD) Pre-paid roaming and short codes translation (CAMEL) Separation of business and private billing profile (MSP) Support of Private Numbering Plans (SPNP) SIM Application Toolkit Enhanced Full Rate Codec (EFR) Fraud Information Gathering System (FIGS) Home Network repricing Call Level Discounts Additional charging parameters 82 UMTS Forum Report No.13 “The UMTS Third Generation Market - Phase ii: Structuring the Service Revenue Opportunities” 2001. 83 See for instance, ITU Briefing Paper, Fixed-Mobile Interconnection Workshop, ITU New Initiatives Programme, 20-22 September 2000, Geneva, Document: WFMI/04. 84 UMTS Forum Report No 13, pg 14 85 A generic definition of the 3G inter-carrier roaming service is a customer’s ability to automatically access basic and enhanced multimedia services from another network when out of coverage of their home network using their same handset on the same access number. 86 The network-to-network interface for inter-working among the different standards is necessary to enable network management, customer care and billing and service creation functions. The radio interface requires some form of global harmonisation to allow global roaming, but there are questions about the extent of full interoperability since there appear to be a number of competing optional modes. The third interface involves a User Identity Module (UIM) (similar to the current Subscriber Identity Module (SIM) card), which can be removable or fixed in a handset. The interoperability of UIM would allow over the air programming of services and applications among the different standards. The resolution of these interface issues will enable the possibility of global roaming among the three optional modes. 88 International Telecommunications Users Group (INTUG), “International mobile roaming and competition law”, Version 2 – draft, July 2001. 89 See ITU Circular Letter No. 97 available at http://www.itu.int/osg/imt-project/circulation.html. 90 See http://www.itu.int/GMPCS/gmpcs-mou/. 91 For a detailed discussion on the need for international harmonisation of licensing, see P. Xavier, “The licensing of telecommunication suppliers: Beyond the EU’s Directive”, Telecommunications Policy, vol.22, no. 6, July 1998, pp. 483-492. 92 Directive No 13/1997/EC of the European Parliament and of the Council of 10 April 1997 on a common framework for general authorisations and individual licences in the field of telecommunications services. 93 Decision No 128/1999/EC of the European Parliament and of the Council of 14 December 1998 on the co-ordinated introduction of a third-generation mobile and wireless communications system (UMTS) in the Community (OJ L 17, 22.01.1999, p.1). 94 Proposal for a directive of the European Parliament and of the Council on a common regulatory framework for electronic communications and services. COM(2000)393, July 12th, 2000. 95 J. Lembke, “Harmonisation and globalisation: UMTS and the single market”, info, vol. 3, No. 1, February 2001, pp. 015-026. 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