An international comparison by UK regulator Ofcom has found that markets with "disruptive" operators tend towards lower prices. The report comparing 25 countries in the period 2010-2015 found that prices were 10.7-12.5 percent lower in countries with a disruptive player, that actively challenged the market dynamics, compared to markets without such an operator. In addition, the study found that prices are 7.3-9.2 percent lower in countries where there are a greater number of players. Combining these two variables suggests that prices could be between 17.2 and 20.5 percent lower on average in countries where there are four or more mobile operators and a disruptive firm is present in the market. As examples of disruptive players Ofcom mentioned the 3 group and French operator Free.
The report comes amid the latest wave of consolidation in the mobile market, a trend that has particularly affected the UK with the takeover of EE by BT and pending merger of 3 UK and O2 UK. Ofcom has come out against the 3-O2 deal, previously saying that it expects the merger would harm competition and could lead to higher prices for end-users. The merger is still under review by the European Commission. A recent report by Austrian regulator RTR showing that prices increased in Austria following 3's takeover of Orange Austria appeared to support the view that consolidation may have a negative impact.
