FICORA suggests significant reductions in wholesale prices for network leasing

Published 13.10.2014

In FICORA's viewpoint, the monthly rent and installation charge for the local loops required for producing broadband services should be less expensive compared to the current price level. FICORA suggests maximum prices for the six most significant telecommunications operators in terms of leasing of broadband networks.

The maximum prices suggested by FICORA are significantly lower than the prices the operators currently charge for their services. FICORA suggests that the maximum price for the monthly rent for a local loop in the copper network is EUR 10.70/month and for the installation charge EUR 85. In the fibre-optic network, the corresponding maximum prices for the monthly charge are EUR 75/month and for the installation charge EUR 131.

The maximum prices suggested by FICORA concern Anvia Oyj, DNA Oy, Elisa Oyj, KYMP Oy, Lounea Oy and TeliaSonera Finland Oyj.

Maximum prices promote competition and enables the market access of new entrants

The price for network leasing is regulated in order to promote the competition in the broadband market and to safeguard the interests of service users. A maximum price set in advance also improves the predictability of regulation from the viewpoint of both the operators with significant market power (SMP) and the competitors who lease networks.

Without price regulation, the operators can, by virtue of their strong market position, set the rent for their networks so high that the market access of competing operators is hindered. This weakens competition, reduces freedom of choice for users and slows down the development of services and the drop of prices.

FICORA's draft decisions can be commented until 31 October 2014.

Draft decisions are available on FICORA's website (in Finnish).

Further information:

Johanna Juusela, Director of the Markets Division, tel. +358 295 390 402

Jenni Koskinen, Communications Market Specialist, tel. +358 295 390 648

Further information on the SMP regulation

Key words: Internet , Broadband , Competition , Markets , Networks , Prices , Significant market power , Requests for comments , News

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