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Rewheel, Competition Commission justified over mobile data prices

The main conclusion of the report was that competition in the Greek market does not operate adequately, as a result of which we have the highest charges in Europe in mobile telephony data.

Via Canada, Finnish research company Rewheel is being justified and with it the Competition Commission, which assigned it a special survey on telecommunications prices in Greece, as a study of 23 experts that strongly challenged Rewheel's methodology for comparing the cost of telecommunications services in different countries was considered unreliable by the Telecommunications Commission of Canada.

The study by NERA Economic Consulting, funded by the Canadian telecommunications company Telus, had been widely used by Greek telecommunications companies since last year to challenge the report published by Rewheel, after instructions from the Competition Commission. The main conclusion of the report was that competition in the Greek market does not operate adequately, as a result of which we have the highest charges in Europe in mobile telephony data.

The same NERA study was used by telecommunications providers in Canada to react to a Rewheel report showing that the Canadian telecommunications market is the least competitive in the world. However, the controversy was finally ruled in favor of Rewheel by the Canadian Telecommunications Commission, in a recent decision, which ruled that competition is not working properly and imposed strict measures on providers to pick up competition and reduce charges.

In the conclusions of the Canadian Commission decision, the conclusions of the NERA report are categorically rejected. As noted, while the study generally appears to have a sound methodology, comparing various data to conclude that retail prices in Canada are lower than those prevailing internationally, NERA uses a non-representative sample of mobile retail prices, resulting in artificially underestimates the cost of services to consumers.

Contrary to what NERA researchers claim, Canadian Commission research concludes that prices in Canada are higher than in other comparable areas, which is not explained by higher network quality or network costs, but from insufficient competition.

Welcoming the decision of the Canadian Commission, the head of Rewheel, Antonis Drossos, stated that the study of NERA, which was paid for by Telus, was rejected and pointed out that this report came from the same group that made desperate efforts to defame Rewheel. The chairman of the Competition Commission, Ioannis Lianos, also expressed his satisfaction, emphasizing that "the Telecommunications Commission of Canada, by its decision, basically gave the Competition Commission expert a right and criticized the research of the specific research company".

Developments from Canada give a new impetus to the Competition Commission's attempt to intervene in the telecommunications market to suppress the operation of competition, claiming responsibilities that have belonged to the Telecommunications and Post Commission since its inception, but have never been exercised by EETT - are characteristic that only now is the recording of prices by EETT through the assignment of the project to an external consultant.

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