UPC Cablecom pays millions to landlord
UPC Cablecom is facing criticism over the connection fees it charges through rent. It has now come to light that the company is reimbursing homeowners a secret sum in the millions for these connections.
As Schweiz am Sonntag writes in its current issue, UPC Cablecom is being harshly criticized by competitor Sunrise because the Cablecom basic fee is paid by the landlord and billed via the rent. It is criticized that these additional costs - not directly included in the subscription prices - distort competition. In order to ensure direct price comparison between UPC Cablecom and its competitors Sunrise and Swisscom, the connection fees would have to be communicated more transparently.
What has now become known and is likely to provide additional fuel for the fire: UPC Cablecom is paying part of the connection fees back to homeowners. As Schweiz am Sonntag estimates, this is likely to amount to a double-digit million sum per year. The company does not want to comment on the amount and justifies the payment by saying that the homeowners are being compensated "for their collection activities". It is not a question of commissions.
Documents obtained by the newspaper show that landlords receive three percent of the subscription fees. Certain homeowners receive - in the sense of a "loyalty bonus" - up to five percent. And the papers from the office of price supervisor Stefan Meierhans also make it clear that the payments are not compensation for collection activities. These can be claimed additionally according to another agreement not available to the price supervisor.
Sara Stalder, the executive director of the Foundation for Consumer Protection, criticizes this "kick-back system" as "non-transparent" and "highly questionable". The fact that the connection fees are billed via the rents could make sense, but the repayments would have to be shown.
However, the price supervisor - like Sunrise - does not generally approve of collecting charges via rentals. On the one hand, because the end customer is not confronted with the connection charge, and on the other hand, because there is an inhibition threshold for termination in the event of non-use. In addition, the landlord has an interest in the continuation of the contractual relationship through the repayments. (hae/Switzerland am Sonntag)
Image: UPC Cablecom
