IGOR ARTEMIEV: THERE IS INCREASING COMPETITION IN COMMUNICATIONS AND TELECOMMUNICATIONS MARKET

On August 27, 2020 during the meeting of the Government of the Russian Federation in the video conference format Igor Artemiev, Head of the FAS Russia, spoke about the state of competition in the communications and information technology market

As part of his speech, the Head of the FAS Russia noted that in 2019, intranetwork roaming was canceled in the territory of the Russian Federation, which led to a 10-fold reduction in tariffs for roaming services as well as to consumers' savings more than 6 billion rubles. At the same time, he added that the telecommunication companies not only did not lose, but won due to the increase in traffic.

Also among the important implemented measures described in the report on the state of competition in 2019 in the field of TV and radio broadcasting is the transition to digital terrestrial television broadcasting with the gradual shutdown of analog broadcasting of mandatory public TV and radio channels in 84 regions of the Russian Federation.

As part of the analysis of prices for set-top boxes, the Antimonopoly Authority initiated cases on indications on violation of the Law on Protection of Competition¹, which is expressed in the establishment of a monopolistically high price for digital set-top boxes in relation to large chain stores (DNS RETAIL LLC, ELDORADO LLC, M.VIDEO PJSC). Preventive measures were also developed: mandatory rounds of stores that sell set-top boxes with DVB-T2 tuner and TVs with DVB - T2 format support for receiving digital television in order to detect unjustified price increases, as well as the availability of user equipment in retail stores two weeks before the analog broadcast shutdown and a week after the shutdown throughout the Russian Federation.

In 2019 in order to prevent unjustified price increases, as well as in compliance with the instructions of the Government of the Russian Federation, the FAS Russia conducted monthly prices monitoring for user equipment for receiving digital television in the regions of the Russian Federation.

The result of these measures (initiation of cases against chain stores, monitoring of prices for set-top boxes) were a price reduction for set-top boxes sold in chain stores, an extending the range of sold set-top boxes, an increase in the number of set-top boxes in the "cheap price segment" to 1000 rubles.

The initiation of cases by the FAS Russia against chain stores had a «precautionary effect» and was a factor of price stabilization and an increase in the share of set-top boxes in the "cheap price segment", which ensured stability and transparency of the entire process of transition to digital broadcasting.

Before the shutdown of analog broadcasting and the transition to digital broadcasting the FAS Russia carried out a large-scale work in terms of setting economically reasonable tariffs for technical means of FSUE RTRS. The implementation of a balanced tariff policy by the FAS Russia allowed for a smooth transition from analog to digital broadcasting, providing the population of the Russian Federation with high-quality digital television with an increase in digital broadcasting coverage to 98.4%.

Today in the territory of the Russian Federation there is a competition development in the market of communication services for broadcasting purposes, as well as an increased competition from and due to the growth of online video services.

Depending on their needs, users have alternatives: digital terrestrial television, cable television, satellite television, IPTV and Internet broadcasting of TV channels.

Note:

* Paragraph 1 of the Part 1 of the Article 10 of the Law on Protection of Competition