Exemption from the competition act for Vodafone and Nova (telecommunication companies) for a network sharing agreement.

The Icelandic Competition Authority (ICA) has cleared a case concerning a horizontal production agreement in the mobile telecommunications sector. The clearance is subject to conditions. Vodafone and Nova plan to implement a network sharing agreement via a joint venture by which they will jointly own, control and develop the RAN-infrastructure (Radio Access Network) needed for their respective businesses. RAN is a component in the production of mobile telecommunications (mobile telephony and mobile broadband). The purpose of the parties’ agreement is to optimize their respective businesses by obtaining efficiency gains, i.e. cost reductions and the creation of a better network in terms of better coverage, quality and technology. The ICA finds that the network sharing agreement does entail a better and more efficient network for Vodafone’s and Nova’s individual businesses. This improved coverage and quality and improved availability of technology of and in the parties’ respective networks is beneficial to the consumers. However, the ICA has identified several issues, which give rise to anti-competitive concerns. These issues are solved by extensive commitments offered by the parties.