Swisscom accepts Commission decision on the last mile
The Swiss telecommunications giant Swisscom accepts the prices for the last mile set by the Federal Communications Commission ComCom. After the deadline for complaints expired on Monday, the company announced that it would not be taking legal action. The last mile was opened up to Swisscom's competitors in April last year.
The Swiss telecommunications giant Swisscom accepts the prices for the last mile set by the Federal Communications Commission ComCom. After the deadline for complaints expired on Monday, the company announced that it would not be taking legal action. The last mile was opened up to Swisscom's competitors in April last year.
On October 9, ComCom reduced the price for domestic telephone connections for 2007 and 2008 to CHF 18.18 following complaints from Swisscom's competitors. The interconnection prices were also reduced: For the shared use of telecom networks of other providers, the fee is now 20 to 30 percent lower.
In fact, the decision means that Swisscom, which dominates the market, will have to charge its competitors lower costs for the shared use of its facilities. The ComCom decision provides legal and investment security for all market participants, according to the Swisscom communiqué issued on Tuesday. This raises hopes of falling prices. There had already been speculation about lower telecoms prices after the ComCom decision was announced in October.
ComCom had based its prices on the legally prescribed calculation method, Swisscom continued, explaining its decision. The exact level of the prices was one of the most contentious points in the run-up to the ComCom ruling. The plaintiffs included Sunrise and Orange. Inevitably, Swisscom has to follow suit. The company estimates that it has invested CHF 70 million in unbundling the last mile since spring 2007. According to Swisscom, it is currently giving its competitors access to 1.5 million households.
In Swisscom's view, some parts of the ComCom ruling are contrary to the law. In particular, Swisscom will appeal to the competent Federal Administrative Court with regard to the provisions on telecommunications secrecy and data protection.
Competitor Sunrise welcomed Swisscom's decision in a statement on Tuesday. This was a step in the right direction. However, Swisscom must now also abandon its "obstructionist policy" in other areas. For example, Swisscom should now implement the Telecommunications Act and offer its competitors fast bitstream access to broadband Internet. Sunrise also demanded open and transparent access to the fiber optic network that Swisscom wants to build in Switzerland.
On October 9, ComCom reduced the price for domestic telephone connections for 2007 and 2008 to CHF 18.18 following complaints from Swisscom's competitors. The interconnection prices were also reduced: For the shared use of telecom networks of other providers, the fee is now 20 to 30 percent lower.
In fact, the decision means that Swisscom, which dominates the market, will have to charge its competitors lower costs for the shared use of its facilities. The ComCom decision provides legal and investment security for all market participants, according to the Swisscom communiqué issued on Tuesday. This raises hopes of falling prices. There had already been speculation about lower telecoms prices after the ComCom decision was announced in October.
ComCom had based its prices on the legally prescribed calculation method, Swisscom continued, explaining its decision. The exact level of the prices was one of the most contentious points in the run-up to the ComCom ruling. The plaintiffs included Sunrise and Orange. Inevitably, Swisscom has to follow suit. The company estimates that it has invested CHF 70 million in unbundling the last mile since spring 2007. According to Swisscom, it is currently giving its competitors access to 1.5 million households.
In Swisscom's view, some parts of the ComCom ruling are contrary to the law. In particular, Swisscom will appeal to the competent Federal Administrative Court with regard to the provisions on telecommunications secrecy and data protection.
Competitor Sunrise welcomed Swisscom's decision in a statement on Tuesday. This was a step in the right direction. However, Swisscom must now also abandon its "obstructionist policy" in other areas. For example, Swisscom should now implement the Telecommunications Act and offer its competitors fast bitstream access to broadband Internet. Sunrise also demanded open and transparent access to the fiber optic network that Swisscom wants to build in Switzerland.
