FICORA sets price cap for Elisa’s partial local loop services

6 May 2010

The Finnish Communications and Regulatory Authority (FICORA) has announced that it is setting maximum prices to be charged by local telco Elisa for leasing out a part of a local loop. The regulator revealed that the decision to introduce the new pricing structure followed a study started in February 2010, in which it undertook an investigation of five operators with a view to reducing wholesale pricing to ‘a reasonable level’. FICORA said that its examination of the market determined that ‘the local loop charges Elisa charges from other telecom operators are not cost-oriented as required by the Communications Market Act, but the prices are unreasonably high,’ prompting it to set a cap on such fees. Elisa has been given three months to reduce its pricing to ‘a level based on actual costs’ and provide the new tariffs to FICORA, and it is understood that the regulator has called for a reduction of more than 20% for the monthly price of a wholesale local loop connection.

The monitoring of broadband markets has been stated as among FICORA’s top priorities for 2010, and as previously reported by CommsUpdate, last month it called on four of the country’s major broadband operators to revise the contract conditions they presently offer to customers, claiming that were issues regarding the vague definition of connection speeds coupled with ‘flaws in the agreement-making process.’ FICORA has also said that it has discovered a number of issues with the pricing of broadband services of several telcos, and it is set to continue its investigations in the autumn and through 2011 ‘unless the operators voluntarily revise their pricing.’