Exemption for Vodafone and Nova regarding cooperation on the operation of the distribution network

The Competition Authority has authorised Vodafone and Nova to enter into a specific partnership for the operation of a mobile phone network. The companies are permitted to jointly own a special operating company which will manage the operation of the network. The basis of the collaboration is that the parties have entered into a settlement with the Competition Authority, agreeing to comply with detailed conditions designed to prevent the companies' collaboration on the operation of the network from distorting competition in the wholesale and retail markets for mobile services. The purpose of the collaboration is to achieve operational efficiencies in the operation of certain infrastructure in mobile networks, whilst at the same time creating more choices and thereby increased opportunities for existing and new service providers in the retail market for mobile services and thus promoting further competition in the relevant This also creates an opportunity for better utilisation of investments in underlying mobile network systems.

It is required that Vodafone and Nova become active competitors in the wholesale market for mobile services. Particular consideration is given to the possibility of virtual network operators and resellers of mobile services having access at the wholesale level. The companies shall ensure equality, objectivity and transparency towards those telecommunications operators that request such access from them. The main purpose of this condition is to ensure effective competition between Vodafone and Nova in the defined markets, which will lead to more options for existing and new service providers on the relevant wholesale market to offer mobile services on the retail market. If effective competition between Vodafone and Nova on the wholesale market is established, it is likely that other competitors on the retail market will be able to gain a share of the benefits from the operational synergies of the partnership.