13.
The Commission’s Report provided the following market shares for the above markets:
Market shares in the national market for wireless connectivity
Source: the merging parties
Market shares in the international market for fibre optic cables
Source: the merging parties
Market shares in the international market for infrastructure hardware
| Players |
Market share |
| Siemens |
51% |
| Ericsson |
10% |
| Alcatel |
10% |
| Plessey |
9% |
| Andrew Satcom |
6% |
| Webb Industries |
3.5% |
| Kathrein |
2.6% |
| Radio Frequency Systems |
2.6% |
Source: the merging parties
14.
The post merger market shares in the above markets will be 25%, 56% and 3.7% respectively.
15.
The Commission was of the view that even though in the first two markets above, the post merger market shares of the merging firms
would be high, no significant competition concerns would likely arise due to the following factors:
15.1.
Barriers to entry are low with room for new entrants to expand their markets. Products are easily transportable, compatible and interoperable
across brands
15.2.
The geographic markets are international and even though exclusive agreements between suppliers and value-added distributors (VAD)
occur, VAD’s may enter into as many exclusive agreements as they like. Furthermore, VAD’s commonly second source and suppliers are allowed to terminate exclusive arrangements on relatively short notice.
15.3.
Since customers are brand-driven and VAD’s source as many brands as possible, customers liberally negotiate preferred terms
and conditions, settlements and discounts. Accordingly, the Commission is of the view that customers exercise countervailing power.
16.
In the market for the supply of masts, the Commission found that the increment in Webb Industries market share will be less than 1%
and is therefore insignificant.
17.
Without making a definitive finding on the relevant markets, we agree with the Commission that the horizontal overlaps do not raise
any competition concerns.
Vertical analysis
18.
The Commission also identified two sets of vertical relationships, which prevailed, viz.
18.1.
In the market for the supply of wireless connectivity, Dartcom and Webb Industries source from each other;
18.2.
In the market for fibre optic cables, M-Tec is a manufacturer of fibre optic cables and Dartcom is a reseller (Value added distributor).
19.
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