EESTI TELEKOM

ANNOUNCEMENT



EESTI MOBIILTELEFON WAS DECLARED SMP



The Communications Board submitted to AS EMT 

(hereinafter: EMT) an extract from the directive of 

the Communications Board "Declaration as an operator 

with significant market power in public telecommunications 

services market" pursuant to which AS EMT was declared 

as an operator with significant market power (SMP) on 

the territory of the Republic of Estonia for the year 

2002 in the public mobile telephone service market.



The Communications Board reasoned the declaring as SMP 

stating that the market share of EMT in the national 

area amounted to 72.3% of the turnover of the public 

mobile telephone services for 2000, thereby exceeding 

the level for declaring as SMP specified in Competition 

terms assessment procedure - at least 25% of the turnover 

of the public mobile telephone services market.



The Telecommunications Act (TCA)  provides that the 

Communications Board shall declare the public 

telecommunications network operator or public 

telecommunications service provider as the operator with 

significant market power in the relevant market of 

telecommunications services and in the area of providing 

such service, whose  market share together with the parent 

company or subsidiary is at least 25 per cent of the turnover  

of the specified public telecommunications service market 

or at least 25 per cent of the traffic in case of the 

interconnection service market, and who does not prove 

that the holding of such market share does not prejudice 

free competition.



AS EMT submitted its written opinion to the Communications 

Board stating that its market share did  not prejudice 

free competition, likewise the mobile telephone services 

market analysis prepared by AS PricewaterhouseCoopers CF&IB, 

which also proved that the activities of EMT did not prejudice 

free competition.



On 13 November 2001, the Communications Board announced 

that it would not declare EMT as an operator with significant 

market power in the public interconnection service market 

for 2002  as the condition for declaration as an operator 

with significant market power set forth in the TCA had lapsed. 

The Communications Board conducted repeated analyses 

concerning the declaration as an operator with significant 

market power in the public interconnection service market 

for 2002, as a result of which the share of AS EMT proved 

to be lower than the minimum limit of 25 per cent required 

for declaration as an operator with significant market power.



As EMT was declared SMP in the general mobile service market 

but not in the public interconnection service market, the 

decrease of the consolidated net profit arising from the 

decisions is lower than the previously stated 100-250 mln EEK.





Kadri Lensment

assistant manager

6311 212