Reactions to the planned merger of Orange and Sunrise
The planned merger of Orange and Sunrise comes as no surprise. However, it has heightened concerns about even less competition in the Swiss telecommunications market. The SDA has compiled various reactions.
There had already been a rapprochement between the two companies in advance, said Swisscom spokesman Sepp Huber according to the news agency SDA. The communications union also sees the planned merger as a logical consequence of consolidation in the telecoms market. There has been speculation about this for months. The same development can be observed throughout Europe. The high investment costs are cited as the main reason. In Switzerland, however, a special situation has arisen because after the merger there will only be two large providers on the market. According to the union, the merger will inevitably lead to staff cuts. The employee representatives are therefore calling for immediate negotiations on a social plan. Together, the two companies employ around 2650 people.
The Federal Office of Communications (OFCOM) and the Federal Communications Commission (ComCom) are expecting a submission from Orange and Sunrise on the planned merger in the next few days. "We need the companies to explain the situation," said Bakom spokesman Roberto Rivola. "We do not know whether Sunrise will relinquish its license or whether Sunrise will be taken over", Rivola continued. As soon as OFCOM has received the submission, an analysis will be carried out to determine whether the license needs to be amended. The Competition Commission (ComCo) will decide on the merger.
In the event of a merger, the partners would have to submit an application to take over the license or cancel the license no longer in use, according to ComCom. ComCom and Bakom could also impose special conditions for the granting of licenses, said ComCom Secretary Peter Bär.
Swiss market too small for additional providers
If the merger goes ahead, there will only be two providers and therefore less competition, said Sara Stalder, Managing Director of the Foundation for Consumer Protection (SKS). The Swiss market is too small for large providers to continue to enter. However, the merger could also be an opportunity. Thanks to its size, the new player could attack the dominant Swisscom. The prerequisite for this would be approval of the tariffs by the regulatory authorities.
The economist and former price watchdog Rudolf Strahm told the online portal Newsnetz that the competition authorities must prevent the merger at all costs. The resulting duopoly would be "an absolute catastrophe" for customers. Like Stalder, Strahm also believes that ComCom must set prices if the merger is approved.
Swisscom, on the other hand, expects additional competition from the planned merger. There are still several market participants, especially in the fixed network sector. "The market will be stimulated by the merger. And we are facing up to this," said Swisscom spokesperson Huber.
The Federal Office of Communications (OFCOM) and the Federal Communications Commission (ComCom) are expecting a submission from Orange and Sunrise on the planned merger in the next few days. "We need the companies to explain the situation," said Bakom spokesman Roberto Rivola. "We do not know whether Sunrise will relinquish its license or whether Sunrise will be taken over", Rivola continued. As soon as OFCOM has received the submission, an analysis will be carried out to determine whether the license needs to be amended. The Competition Commission (ComCo) will decide on the merger.
In the event of a merger, the partners would have to submit an application to take over the license or cancel the license no longer in use, according to ComCom. ComCom and Bakom could also impose special conditions for the granting of licenses, said ComCom Secretary Peter Bär.
Swiss market too small for additional providers
If the merger goes ahead, there will only be two providers and therefore less competition, said Sara Stalder, Managing Director of the Foundation for Consumer Protection (SKS). The Swiss market is too small for large providers to continue to enter. However, the merger could also be an opportunity. Thanks to its size, the new player could attack the dominant Swisscom. The prerequisite for this would be approval of the tariffs by the regulatory authorities.
The economist and former price watchdog Rudolf Strahm told the online portal Newsnetz that the competition authorities must prevent the merger at all costs. The resulting duopoly would be "an absolute catastrophe" for customers. Like Stalder, Strahm also believes that ComCom must set prices if the merger is approved.
Swisscom, on the other hand, expects additional competition from the planned merger. There are still several market participants, especially in the fixed network sector. "The market will be stimulated by the merger. And we are facing up to this," said Swisscom spokesperson Huber.
