Swisscom: ComCo has scored an own goal with merger ban
The merger of Orange and Sunrise would have strengthened one of Swisscom's most important competitors and intensified competition, said Swisscom President Anton Scherrer at the AGM. It was also announced that Swisscom would be appealing Comcom's decision to reduce the fees for leased lines.
The economies of scale of this merger were obvious, Scherrer said on Tuesday at the Annual General Meeting in Zurich, according to SDA. Investments and fixed costs could have been spread over twice the number of customers. However, with its ban, the authority has now "prevented the consolidation that is logical from a business perspective, as is currently taking place in many European countries", said Scherrer. With this decision, the competition authority has surprised wide circles. It remains to be seen whether the companies involved will appeal against the Competition Commission's decision.
However, one thing is certain: even if the merger does not take place: Swisscom is in competition in Switzerland with companies that are part of international groups. France Télécom, for example, the parent company of Orange, is several times larger than Swisscom. This shows: "Swisscom faces strong competitors, competition in the Swiss telecoms market is playing out and there is therefore no immediate need for additional regulation," emphasized Scherrer. A revision of the Telecommunications Act is not necessary. This would mean legal uncertainty for all providers and jeopardize investments, particularly in the fibre optic network.
Comcom's decision will be appealed
On the fringes of the Annual General Meeting, it was announced that Swisscom is going ahead with the decision of the Communications Commission (Comcom) to reduce the fees for leased lines. As Group CEO Carsten Schloter told the financial news agency AWP, there are major differences between urban and rural areas. The question of regional differentiation of market dominance must be clarified here. This question is also important for the expansion of fiber optic networks. According to the Comcom ruling from mid-March, Swisscom should offer its applicants leased lines at cost-oriented prices. Comcom lowered the monthly resale prices for the years 2007 to 2009 by 15 to 30 percent.
Specifically, it is about the connections that Swisscom makes exclusively available to customers. For example, a company that wants to transmit data from one location to another. The leased lines are also used by Swisscom's competitors who want to supplement their own network.
However, one thing is certain: even if the merger does not take place: Swisscom is in competition in Switzerland with companies that are part of international groups. France Télécom, for example, the parent company of Orange, is several times larger than Swisscom. This shows: "Swisscom faces strong competitors, competition in the Swiss telecoms market is playing out and there is therefore no immediate need for additional regulation," emphasized Scherrer. A revision of the Telecommunications Act is not necessary. This would mean legal uncertainty for all providers and jeopardize investments, particularly in the fibre optic network.
Comcom's decision will be appealed
On the fringes of the Annual General Meeting, it was announced that Swisscom is going ahead with the decision of the Communications Commission (Comcom) to reduce the fees for leased lines. As Group CEO Carsten Schloter told the financial news agency AWP, there are major differences between urban and rural areas. The question of regional differentiation of market dominance must be clarified here. This question is also important for the expansion of fiber optic networks. According to the Comcom ruling from mid-March, Swisscom should offer its applicants leased lines at cost-oriented prices. Comcom lowered the monthly resale prices for the years 2007 to 2009 by 15 to 30 percent.
Specifically, it is about the connections that Swisscom makes exclusively available to customers. For example, a company that wants to transmit data from one location to another. The leased lines are also used by Swisscom's competitors who want to supplement their own network.
