ComCom to lower Swisscom’s charges for LLU, interconnection and leased lines

13 Feb 2019

Switzerland’s Federal Communications Commission (ComCom) has completed a review of the prices charged by state-owned fixed line incumbent Swisscom for certain regulated services and has announced plans to lower the prices for interconnection, local loop unbundling (LLU) and carrier line services with retroactive effect for the 2013-2016 period. ComCom noted that the prices Swisscom charges for services provided to its competitors must be cost-based, adding that the review used fibre-optic cabling as the basis for its cost model for the first time, rather than copper infrastructure as it had done previously. The study was prompted by requests from rivals Sunrise and Salt, which asked ComCom to review pricing from 2013 onwards.

ComCom plans to lower charges for unbundled copper subscriber lines by 10%-25%, whilst interconnection prices would be cut by an average of around 10%. Leased lines, meanwhile, will see a reduction in price of between 65% and 80%, with the regulator attributing the size of the adjustment to a correction of ‘Swisscom’s inappropriate price-setting process’. Pricing for access to Swisscom’s cable ducts were unaffected by the ruling, however, as the watchdog said there could be no objection to the charges set by the incumbent. Other areas reviewed by the regulator, such as co-location and subscriber line billing will see ‘little, if any, change’.

Swisscom has a 30-day window to appeal the decision and the operator confirmed in a press release that it was analysing ComCom’s findings and would consider filing an appeal. The operator explained that it was only the change to leased line pricing that it found ‘difficult to comprehend’.