TKK reviews Telekom Austria's wholesale charges: Unbundling fees to be reduced

Press release dated 7 May 2008

The Telekom-Control Commission (TKK) is currently reviewing whether Telekom Austria is abusing its market power and subjecting its competitors to an unjustified margin squeeze in the use of its wholesale broadband access (bitstream access) and unbundling products.

The review was initiated in the wake of Telekom Austria's Christmas 2007 promotional campaign (KombiPaket, a combined service package) because suspicions arose that the charges applied since the introduction of the combined package had exposed competitors to a margin squeeze at the retail and wholesale level in the course of the year 2008. Such a margin squeeze would constitute a violation of the SMP decisions applicable to Telekom Austria on the market for broadband access and on the unbundling market.

The TKK informed Telekom Austria of this suspicion in the course of the ongoing legal supervisory procedure and instructed the company to put an end to the abuse described above. On April 30, 2008, Telekom Austria then offered its competitors a reduction of unbundling fees to EUR 9.33, retroactive to January 1, 2008. The TKK assumes that Telekom Austria's offer is provisional and not subject to additional conditions.

The TKK will continue the procedure with due attention to the rights of the parties involved until the wholesale charges for bitstream access and unbundling are finally reduced to a non-discriminatory level which does not subject TA's competitors to a margin squeeze.