Response to TKK: A1 Telekom improves standard contract offer for “virtual unbundling”

Press release dated 26 January 2011

With the landmark decision M 3/09 on 6 September, 2010, the Austrian Telecom-Control Commission (TKK) defined the general framework for expanding next generation access (NGA) networks. Among the requirements which the TKK placed on A1 Telekom in this context was the obligation to offer a standard contract offer for “virtual unbundling”. In a way comparable to current unbundled services, this novel wholesale product provides alternative operators with a great degree of flexibility in designing products they offer to end customers, thus ensuring continued competition among broadband products. The first contract offer published by A1 Telekom in December 2010 failed to meet regulatory requirements, both in technical and business terms, so that TKK called on A1 Telekom to publish an improved offer.

Following a preliminary review of the improved offer, TKK decided at a meeting on 24 January, 2011 to refrain from initiating a legal supervision procedure, as specified in § 91 of the 2003 Austrian Telecommunications Act (TKG 2003), against A1 Telekom Austria AG. The decision was based on the fact that A1 Telekom had responded, at least in part, to the stated criticism by subsequently presenting an offer that seems to comply with regulatory requirements, subject to closer examination in detail. As part of the review in detail, TKK will in a first step submit the offer to a public consultation as part of the evaluation of the overall package of unbundling measures (including other new annex products such as access to cable ducts and optical fibre).