Swisscom reacts with surprise to Weko's accusations
The telecommunications group Swisscom rejects the Competition Commission’s (Weko) allegation that it abused its market power with regard to ADSL rates. In an initial statement, Swisscom expressed its dismay «at the content and timing» of the publication of the allegation. Sunrise, on the other hand, is pleased.
The telecoms group Swisscom rejects the accusation by the Competition Commission (Weko) that it has abused its market power with regard to ADSL tariffs. In an initial statement, Swisscom expressed its surprise at the "content and timing" of the publication of the accusation, as proceedings are currently pending before the Federal Administrative Court. In these proceedings, the court will assess the question of possible market dominance. According to the criticism from Swisscom, this court is the supreme authority of the Competition Commission.
The Competition Commission's application provides for a fine of around CHF 237 million due to the prices for ADSL wholesale services which, according to the Competition Commission, were set too high. However, Swisscom will not make any provisions until there is legal certainty on these issues, the statement continued.
Swisscom doubts that it can dominate the market at all. Swisscom spokesperson Christian Neuhaus told SDA in response to an inquiry that the competition is playing a role, as 80 percent of Swiss households can choose between broadband Internet via copper cable (ADSL) and cable Internet, which can be obtained from Cabelcom and around 200 other providers. Competitors would have the option of offering basic ADSL.
According to the Competition Commission Secretariat, however, this is precisely one of the points of contention: According to the other providers, the technical feasibility is problematic, said Rafael Corazza from the Competition Commission Secretariat on request.
Sunrise satisfied
The reaction of Swisscom's competitor Sunrise was clear. The illegal behavior of state-owned Swisscom has finally been established, it said in a statement. The application to the Competition Commission is a milestone on the way to more competition. Sunrise hopes to finally be in the black in broadband Internet thanks to lower wholesale prices. The decisive factor now is what prices the Competition Commission considers appropriate.
Sunrise is hoping for a "thaw" in the battle between the telecoms groups. On Tuesday, Swisscom announced that it would accept the price reductions ordered by the Federal Communications Commission (Comcom) for the so-called last mile, among other things.
The Competition Commission's application provides for a fine of around CHF 237 million due to the prices for ADSL wholesale services which, according to the Competition Commission, were set too high. However, Swisscom will not make any provisions until there is legal certainty on these issues, the statement continued.
Swisscom doubts that it can dominate the market at all. Swisscom spokesperson Christian Neuhaus told SDA in response to an inquiry that the competition is playing a role, as 80 percent of Swiss households can choose between broadband Internet via copper cable (ADSL) and cable Internet, which can be obtained from Cabelcom and around 200 other providers. Competitors would have the option of offering basic ADSL.
According to the Competition Commission Secretariat, however, this is precisely one of the points of contention: According to the other providers, the technical feasibility is problematic, said Rafael Corazza from the Competition Commission Secretariat on request.
Sunrise satisfied
The reaction of Swisscom's competitor Sunrise was clear. The illegal behavior of state-owned Swisscom has finally been established, it said in a statement. The application to the Competition Commission is a milestone on the way to more competition. Sunrise hopes to finally be in the black in broadband Internet thanks to lower wholesale prices. The decisive factor now is what prices the Competition Commission considers appropriate.
Sunrise is hoping for a "thaw" in the battle between the telecoms groups. On Tuesday, Swisscom announced that it would accept the price reductions ordered by the Federal Communications Commission (Comcom) for the so-called last mile, among other things.
