FICORA lowers fibre prices and reduces regulation

Published 15.03.2018

Too-high wholesale prices impede competition on the broadband market. To promote competition, telecoms are to cut wholesale prices by 28 to 80 per cent. The Finnish Communications Regulatory Authority (FICORA) is imposing price caps on fibre local loops provided by the three market leaders in Finland. Furthermore, regulation on copper local loops will be scaled down. The decisions become effective in three months.

FICORA has analysed the Finnish broadband market and given decisions on significant market power (SMP) concerning 21 telecommunications operators. FICORA imposes three-year price caps on the fibre local loops of DNA Oyj, Elisa Corporation and Telia Finland Oyj. This will reduce the wholesale prices these operators charge from competing operators by 28 to 80 per cent. DNA, Elisa and Telia hold almost 90 per cent of the Finnish local loop market. “Targeting the fibre prices of these operators with ex ante regulation benefits the market and society the most", Director-General Kirsi Karlamaa explains.

Significant market power companies are required to provide regulated wholesale products to other telecommunications companies on non-discriminatory and transparent terms. The imposed obligations promote the efficient use of existing networks.
FICORA will also streamline regulation on copper local loops. The copper networks continue to serve a large population base, but demand is declining, and so are investments in the technology. Another motivation for the move was that companies have committed to keeping copper local loop prices stable in the near future through self-regulation.

Investment boost

The aim of the imposed obligations is to improve competitive opportunities on the broadband market. Competitive pressure is one of the key motivators of investment. “Promoting competition means first and foremost promoting freedom of choice and the availability of reasonably priced broadband services to companies as well as citizens", stresses Director Johanna Juusela.

Decisions (in Finnish)

For further information, please contact:

Aleksandra Partanen, Senior Specialist, tel. +358 295 390 529
Marja Lehtimäki, Deputy Director, tel. +358 295 390 515

Key words: Internet , Broadband , Competition , Decisions , News

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