ComCom demands Swisscom cut wholesale rates

25 Sep 2008

Swiss telecoms regulator the Federal Communications Commission (ComCom) has ruled that Swisscom must cut the prices it charges competitors for use of its fixed lines infrastructure and and for unbundled local loops for 2007 and 2008. The former monopoly must retroactively lower the unbundled price for a subscriber access line to CHF18.18 (USD16.71) per month from CHF23.50, with effect from 1 January 2008. The price for an unbundled line in 2007 was lowered to CHF16.92 per month from the original CHF31.

Under a revised Telecommunications Act, which came into force on 1 April 2007, Swisscom is required to provide competitors with full access to the unbundled local loop, access to ducts and leased lines. In March 2008, Swisscom lowered its price to CHF23.50, but only for 2008. It said then that 43 contracts had been signed with 22 alternative providers, with Cablecom and VTX making the fastest progress in implementing unbundling. ComCom also cut the interconnection prices Swisscom can charge for the use of its fixed line network for 2007 and 2008 by up to 30% compared with Swisscom’s current prices. Last year, ComCom retrospectively lowered Swisscom’s interconnection charges by an average of 20% for the period 2004 to 2006.

Switzerland, Swisscom