Comcom: Comco decision is "unsatisfactory but understandable"
The Communications Commission (Comcom) has closed the case regarding the merger of Orange and Sunrise. However, the decision by the Competition Commission (Weko) leaves Comcom President Marc Furrer with a bitter aftertaste.
The result is unsatisfactory, said Furrer when asked by the SDA news agency. A telecoms market with two small, "if possible still unmotivated" providers alongside the large Swisscom was of no benefit to anyone.
Although Furrer understands the decision from a competition law perspective and with a view to the mobile telephony market, he would still prefer to have three full-service providers in Switzerland: Orange, Cablecom and Swisscom. The President of the Telecommunications Regulatory Authority described Orange's "lukewarm attitude" throughout the entire process as a major problem. The company had not shown any convincing interest in competing with Swisscom in terms of services and prices. He himself had always made it clear to Orange during the process "that they would have to make certain concessions and also promises regarding price, mobile termination and contract conditions for Cablecom in order to get the green light from the Competition Commission". However, Orange did not want to accept binding conditions "and did not make any concrete promises, for example with regard to prices".
According to SDA, Furrer went on to explain that the Competition Commission's hands were tied by the Telecommunications Act. It could not have imposed any conditions. Comcom is therefore closing the files on the matter - unless the parent companies of Orange and Sunrise take the decision further.
Although Furrer understands the decision from a competition law perspective and with a view to the mobile telephony market, he would still prefer to have three full-service providers in Switzerland: Orange, Cablecom and Swisscom. The President of the Telecommunications Regulatory Authority described Orange's "lukewarm attitude" throughout the entire process as a major problem. The company had not shown any convincing interest in competing with Swisscom in terms of services and prices. He himself had always made it clear to Orange during the process "that they would have to make certain concessions and also promises regarding price, mobile termination and contract conditions for Cablecom in order to get the green light from the Competition Commission". However, Orange did not want to accept binding conditions "and did not make any concrete promises, for example with regard to prices".
According to SDA, Furrer went on to explain that the Competition Commission's hands were tied by the Telecommunications Act. It could not have imposed any conditions. Comcom is therefore closing the files on the matter - unless the parent companies of Orange and Sunrise take the decision further.
