This will allow Swisscom to "further cement its market dominance", Orange wrote on Tuesday, according to SDA. Due to Swisscom's high market share, most connections from the fixed network or other mobile networks go to the Swisscom mobile network, it added.
As a result, Swisscom collects fees for over 1.8 billion terminated call minutes - around three times more than Orange. Swisscom is even paying "a lion's share" of the fixed and mobile network charges into its own pockets at the expense of its fixed network customers. Orange had proposed a significant reduction in its own termination fees in the double-digit percentage range as of January 1, 2011 and demanded that Swisscom also reduce its fees to an appropriate level. As termination at Orange also generates higher costs than at Swisscom, Orange has also proposed maintaining the current difference of three centimes per terminated call minute.
This proposal is supported by an expert report commissioned by the Federal Office of Communications (OFCOM) in 2009. However, the negotiations with Swisscom to date have not been successful, writes Orange.
Swisscom defends itself against accusations
Unlike Orange, competitor Sunrise continues to rely on negotiations. This is the easiest way to reach an agreement, a spokeswoman told the financial news agency AWP. Talks are underway and the existing offers from Swisscom and Orange could certainly be "brought down to a common denominator".
Swisscom defended itself against Orange's accusations. Following the failed merger of Sunrise and Orange, the company has once again taken the initiative to reduce termination fees, as it did in 2009, and has been conducting intensive negotiations with Swiss fixed and mobile network providers for months. Swisscom has had the lowest termination fees of the Swiss mobile providers for years and therefore makes annual net payments to its competitors Sunrise and Orange in the double-digit million euro range, it added.