DEVELOPMENT OF COMPETITION IS OBSERVED ON TV BROADCASTING MARKET IN RUSSIA

Having studied the market, FAS experts concluded that competition from online video-services is intensifying

On 26 December 2019, FAS Commission on market analysis heard the findings of studies of competitive environment on the markets of mobile telephone communications and TV broadcasting.

Based on the study findings, the experts classified the market of mobile telephone communications in the Russian Federation as a market characterized by a high concentration level and underdeveloped competition, particularly, due to high entry barriers. “MTS” PJSC, “MegaFon” PJSC, “VympelCom” PJSC and “T2 Mobile” Ltd. as well as communications providers – members of their groups of persons are classified as entities that have the dominant position on this market in the Russian Federation¹.

Carrying out the analysis, the experts tentatively divided the communications services markets for the purposes of TV broadcasting into “paid-for” and “free-of-charge”. Based on the data regarding the market concentration levels and entry barriers, FAS concluded that the “paid-for” market is moderately concentrated with developed competition, while the “free-of-charge” segment is highly concentrated with underdeveloped competition. The “paid-for” market of TV broadcasting is competitive and none of the economic entities is capable to exercise the decisive influence upon general conditions of goods circulation; and several companies have the dominant position on the “free-of-charge” market, depending on a particular locality.

At the same time, competition is developing on the market of communications services for the purposes of TV broadcasting in the Russian Federation and competition from online video-services is intensifying. Depending on their needs, users have alternatives in the form of digital terrestrial TV, cable TV, satellite TV, IPTV and webcasting of TV channels.

¹ Under Part 3 Article 5 of the Federal Law “On Protection of Competition”