Editor’s Note: This note is drawn from the Malaysian Communications and Multimedia Commission’s Guideline on Substantial Lessening of Competition (RG/SLC/1/00(1)).
The Communications and Multimedia Act (1998) specifically recognises the impact of convergence between telecommunications and other communications sectors in defining markets for competition analysis. Under the Act, a ‘communications market’ is an economic market for:
- A network service,
- An applications service,
- Goods or services used in conjunction with a network service or an applications service (e.g. television and telephone equipment, or billing services), or
- Access to facilities used in conjunction with a network service or an applications service.
Malaysia’s approach to defining ‘communications markets’ seeks to recognise the impact of convergence in ICT sectors. Under convergence, technological change is creating new opportunities for competitive rivalry, causing traditionally separate service markets to merge. The Act requires market definition to have regard to all sources of actual or potential competition in a communications market. This includes the use of mobile and other wireless access technologies (including, for example digital broadcasting and datacasting).
Figure 1 below illustrates the wide range of possible services and technologies that can fall within the definition of a communications market.
Figure 1: Market and Services Structures in the Convergence Sector
