Decision of TKK (29.11.2010)

TKK
29. 11. 2010
Marktbeherrschung
Fixed-link voice telephony for non-residential customers
A1 Telekom Austria
M 10/09

On November 29, 2010, the Telekom-Control-Kommission (TKK) issued an official decision regarding the analysis of the retail market for publicly available telephone services provided at a fixed location for non-residential customers. In the decision, the TKK determined that A1 Telekom Austria AG possesses significant market power on the market in question pursuant to Articles 35 and 37 of the Austrian Telecommunications Act (TKG) 2003.

In order to address the competition problems which would arise on this market in the absence of regulation, A1 Telekom Austria AG was subjected to specific obligations to notify and publish its terms and conditions regarding rates and charges as well as its general terms and conditions of service (including service descriptions) for new call charges, and to adhere to price limits. In addition, in order to prevent a margin squeeze in the voice services offered on this market by A1 Telekom Austria AG, the company was subjected to an obligation to set its charges in such a way that an efficient competitor would be able to offer retail products at costs comparable to those of A1 Telekom Austria AG. With regard to their competitive compatibility, A1 Telekom Austria AG's bundled products which include at least one of the products on the market in question must meet the review criteria of replicability, margin squeeze prevention and avoidance of any transfer of market power. Moreover, A1 Telekom Austria AG was also subjected to an obligation to maintain accounting separation. The obligations previously imposed with regard to the markets for "Publicly available local and/or national telephone services provided at a fixed location for non-residential customers (retail market)" and for "Publicly available international telephone services provided at a fixed location for non-residential customers (retail market)" were removed.

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