9) “Infrastructure Sharing” means various kinds of arrangements to share an infrastructure sharing and collocation provider’s active and passive infrastructure, including, but not limited to, the sharing of network elements, antennas, switches, radio access nodes, systems, equipment, facilities, premises or rights of way, with an infrastructure sharing and collocation seeker, subject to an agreement between the parties. 10) “Margin Squeeze” means the occurrence when an Operator with Significant Market Power in a relevant retail market who also supplies an essential Wholesale Service to a competitor in a retail market, sets its retail tariff and/or wholesale tariff, such that, the difference between the retail tariff and the wholesale tariff of the corresponding Wholesale Service, would not allow an efficient retail competitor to sustain a competing service. 11) “Notifying Party” means a Telecommunications Operator that submits a written notification to the Authority seeking approval to introduce or change a Controlled Tariff. 12) “Passive Infrastructure” means infrastructure that is not part of the active layer of a Telecommunications Network, including but not limited to, sites, buildings, shelters, towers, masts, poles, ducts, trenches, electric power supply, and air conditioning. 13) “Predatory Pricing” means where an operator with Significant Market Power deliberately incurs losses or forego profits in the short term, with the intention of foreclosing or be likely to foreclose, a competitor or potential competitor. 14) “Retail Service” means a Telecommunications Service that is provided to the end user or subscriber and not to another Telecommunications Operator. 15) “Significant Market Power (SMP)” means the ability to materially affect the price or supply in the relevant market for communications service as a result of either control over essential facilities or use of a Person’s position in the market. 16) “SMP Operator” or a “Telecommunications Operator with SMP” means a Telecommunications Operator that has been determined by the Authority to hold Significant Market Power in a relevant market either acting individually or jointly with others, it enjoys a position equivalent to dominance, that is to say a position of economic strength affording it the power to behave to a noticeable extent independently of competitors, customers, and ultimately consumers. 17) “Vertically Integrated Operator” means a Telecommunications Operator that provides Wholesale and Retail Services. 18) “Wholesale Service” means a Telecommunications, Collocation, or Infrastructure Sharing Service, that is provided to another Telecommunications Operator. 19) “Working Days” means business working days only and shall not include Saturday, Sunday and any day that has been declared to be a public holiday by the Federal Democratic Republic of Ethiopia. 3. Objectives The objectives of this Directive are to: 1) Provide clarity on the rules and procedures the Authority shall follow to assess the lawfulness of tariffs, intervene to set tariffs, and review the tariffs of Telecommunications Operators pursuant to Articles 45 and 46 of the Proclamation. 2

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