TELECOMMUNICATIONS COMPETITION DIRECTIVE WHEREAS it has become necessary to provide a framework to determine whether a Telecommunications Operator has engaged, or has likely engaged, in conduct that could reasonably be regarded as anti-competitive; RECOGNIZING that in this endeavour it is essential to define relevant markets and determine whether a Telecommunications Operator has Significant Market Power in a relevant market; COGNIZANT of the need to prevent Telecommunications Service markets from being monopolized, and promote competition among Telecommunications Operators; UNDERSTANDING the importance of providing a framework to review and decide on mergers and acquisitions affecting Telecommunications Operators; NOW, THERFORE, the Ethiopian Communications Authority hereby issues this Telecommunication Competition Directive in accordance with the Communications Service Proclamation No.1148/2019 Articles 6(2), 47 and 54(2) PART I GENERAL 1. Short Title This Directive shall be cited as the “Telecommunications Competition Directive No. 798/2021.” 2. Definitions In this Directive, unless the context otherwise requires: 1) “Authority” means the Ethiopian Communications Authority established under the Communications Service Proclamation No. 1148/2019. 2) “Acquisition” means the purchase of one company by another, through either the purchase of its shares or the purchase of its assets. 3) “Collocation” means the placement of network equipment or systems which are used for service provision by a Telecommunications Operator together with network equipment or systems installed at premises of other Telecommunications Operator at a technically feasible location on the basis of agreement reached between them. 4) “Conglomerate Merger” means merger between firms in unrelated activities. 5) “Downstream Operation” means the business operations of a Vertically Integrated Operator that concerns with the supply of Retail Services, as if the supply of Retail Services, were carried out by a legally separate entity. 6) “Downstream Retail Cost” means the cost of the Downstream Operation. 7) “Essential Facilities” means premises, infrastructure, or resources of a Telecommunications Service that cannot feasibly be duplicated or substituted, due to economic, technical or environmental reasons. 8) “Horizontal Agreement” means a concerted practice, or mutual understanding, oral or written, among Telecommunications Operators that compete at the same market level. 2