News

02-05-2007
New appointments at Copenhagen Economics

Petter Berg is appointed Senior Economist per 1st May, 2007

In two years, Petter Berg has made Copenhagen Economics a well established player on the Swedish market for competition economics advice. Petter has created good relationships with both customers and business partners in Sweden.

 

Please see here for further details.

 

Mikkel Egede Birkeland joins Copenhagen Economics as Business Manager Mikkel Egede Birkeland (35) joins the company as business manager to lead the area of Regions and Trade.

Mikkel joins us from a position as senior economist at TDC and has previously worked for COWI, and Orange in Paris.

 

Please see here for further details.

Linda Bisp (27)  joins Copenhagen Economics as Accounts Assistant

Linda joins the adminstration and support team to further strengthen the internal operating processes. Linda joins us from a position in Storstrøms Amt. Please see here for further details.

01-05-2007
Gains from free trade with Korea

The European Commission's General Directorate for Trade (DG Trade) commissioned Copenhagen Economics and Professor Joseph F. Francois to analyse the economics aspects of a potential free trade agreement between the EU and the republic of South Korea.

 

Korea is a growing economy, roughly of the same size as Spain. GDP per capita is also approaching Spanish levels. We found that both Korea and the EU can look forward to substantial welfare gains if agreement is reached on free trade in agriculture, manufacturing and services. For South Korea the gains will materialise through better market access to the European market, including advanced electronics and motor vehicles. Korea will also gain from opening its services sectors to European service providers, including maritime services and shipping. These are essential inputs for the continuation of Korean growth, and European service providers can competitively supply this if current barriers are dismantled.

 

The European Commission has now obtained a mandate to negotiate with Korea. For further information please see the report here  

 

Or consult the Commission's webpage on trade with Korea here

 

For further information please contact Martin Hvidt Thelle

 

25-03-2007
A brief note on roaming costs and profit margins

In February 2007, the European Parliament’s committee on Internal Market and Consumer Protection (IMCO) issued an opinion on the European Commission’s proposal to regulate international roaming. The opinion of the IMCO drew on a study by Copenhagen Economics. Shortly after the IMCO had presented its opinion, A.T. Kearney issued a study commenting on two specific issues in the Copenhagen Economics study, namely the size of the roaming specific costs at wholesale level and the size of the profit mark-up over retail costs on retail level. In their study, A.T. Kearney argues that both the roaming specific costs and the profit mark-up are higher than estimated by Copenhagen Economics.

However, A.T. Kearney's arguments are invalid; hence the A.T. Kearny reply does not change our previous recommendations on regulating prices on international roaming. Please find our reply here

 

 

For further information, please contact Christian Jervelund

 

23-03-2007
Study on international roaming in mobile telecommunication networks

The State Secretariat for Economic Affairs in Switzerland (SECO) commissioned Copenhagen Economics to investigate whether or not Swiss end-users pay excessive international roaming prices, and if that is the case, to provide insight into and advice on how the Swiss Authorities could react to these high prices in the light of the current EU proposal to regulate international roaming prices.

 

We found clear evidence of high international roaming prices for Swiss end-users compared to costs. On comparing prices between a Swiss and a French end-user both calling from France to Switzerland and France, we found that the Swiss end-user pays at least twice as much as the French end-user.

 

Entering into a bilateral agreement between Switzerland and the EU would lead to large savings for Swiss end-users. However, due to the lack of tools similar to the EU internal market provisions we find it unlikely that Switzerland will be able to honour its commitments to reduce international roaming wholesale prices implied by such an agreement. A strengthening of the sectoral regulator and a shorter time until regulatory decisions take effect should be considered. In the meantime, Swiss authorities should examine temporary regulation at the retail level. Other measures, such as transparency enhancements, could also lead to lower retail prices. For further information, please contact Christian Jervelund

27-02-2007
Cost of capital for broadcasting transmission

The Swedish Regulatory Authority (PTS) has asked Copenhagen Economics to calculate the WACC (Weighted Average Cost of Capital) for the Swedish broadcasting markets. The background is that PTS has found that Teracom holds significant market power in three defined national broadcasting markets. PTS has therefore implemented pricing remedies which will be based on the WACC. Our calculation shows that the WACC is around 8.4 percent. The report can be accessed here For questions regarding the report or Copenhagen Economics valuation services, please contact Karl Lundvall