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Price controls were then focused at the wholesale level, while retail price regulation was relaxed - just how much depended on the extent of competition, but generally the focus was on SMP providers.
With increasing direct and indirect competition from unregulated digital platforms, retail tariffs of all telecommunication providers, even those with SMP, are severely constrained.
The new procedure ensured that regulatory resources were directed to greater scrutiny of tariffs for services in markets where the operators had significant market power (SMP) and were not directed to the ex-ante examination of tariffs for services in markets that were considered to be effectively competitive, or to time-bound or other promotional offers.
The participants on each market were identified, and they were assessed in terms of significant market power.
In the wholesale markets, suppliers designated with SMP have to offer cost-based prices, generally based on TSLRIC+ (total service long run incremental costs plus a mark-up for common costs).
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