Expert witness statement for Interim Injunction in PNG

Project by Link Economics Group

antitrust law nz

Expert witness statement for an Interim Injunction regarding Mobile Termination Charges in Papua New Guinea, 2011

The smaller mobile network in PNG sought an interim injunction in relation to the mobile termination rates charged by the largest mobile network.

Emma Ihaia was engaged by the smaller network to prepare a report that examined the effects of the level of mobile termination rates on competition. Her report discussed the strategy by a large network of setting mobile termination rates above costs as a means to raise its rivals costs, resulting in a margin squeeze for a smaller network, and a transfer from the small to large network where traffic flows are not balanced. The report also discussed the effects of on-net/off-net price discrimination by larger networks, which can result in a traffic imbalance and create a barrier to expansion by smaller networks. The report reviewed international findings by regulators on these issues and compared mobile termination rates charged in Papua New Guinea with international benchmarks.

The application for an interim injunction was successful.

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