Lower prices for telecom service providers

Bern, 08.12.2011 - Lower prices for Swisscom competitors, retroactive for 2011: the Federal Communications Commission (ComCom) has reduced the price for the unbundled subscriber line by approximately seven percent. In addition, ComCom is reducing the prices for interconnection and rental prices at the main distribution frame (co-location). From 2013, ComCom will use modern technologies such as optical fibre as a basis for calculation.

Price of an unbundled subscriber line lowered to CHF 15.50 per month
After extensive analyses and price calculations by the Federal Office of Communications (OFCOM), ComCom has decided that the monthly price for the subscriber line (unbundling of the 'last mile') will be reduced from CHF 16.60 to CHF 15.50, retroactively for 2011. ComCom had already reduced prices in previous years. As recently as 2008, access to the last mile cost CHF 18.80. The new unbundling price set by ComCom is approximately four to five francs above the European average. In addition to different calculation methods, this difference is attributable to higher price levels (e.g. civil engineering work) and the comprehensive coverage of fixed network connections in Switzerland.

Cheaper interconnection
Interconnection prices recompense Swisscom for the use of its fixed network for other telecom providers' telephone calls (termination). For 2011 these prices are being reduced by up to 15 percent. In the case of interconnection services which are not charged for on a usage basis, prices are being reduced by up to 36 percent. These include services which are essential for interconnection, such as, for example, setting up carrier selection or implementing new blocks of numbers. In the fixed network arena, interconnection prices therefore continue to rank among the lowest in Europe. 

Prices for co-location also reduced
In order to enable Swisscom's competitors to unbundle subscriber lines, they have to install their own equipment in exchanges and operate it themselves. They pay a rental for this co-location. As a result of the ComCom decision, the rental cost for space in Swisscom exchanges is being reduced by about 2 percent.

Cost-based pricing – a new basis
As the market-dominant provider, Swisscom is obliged to provide certain services to the competitors at cost-based prices. Swisscom currently calculates its prices on the basis of copper technology. However, ComCom can no longer take this technology, which has since become antiquated, into account, because it does not correspond to efficient service provision. Nowadays, a modern telecommunications network would be built using optical fibre technology. ComCom pointed out some years ago that technological change would create a new situation and that pricing calculations would have to be adapted accordingly.

 


Address for enquiries

ComCom secretariat, tel. +41 31 323 52 90



Publisher

Federal Communications Commission ComCom
http://www.comcom.admin.ch/

Federal Office of Communications
http://www.ofcom.admin.ch

https://www.admin.ch/content/gov/en/start/documentation/media-releases.msg-id-42583.html