Swiss telecom watchdog faults Swisscom for overcharging

The telecom regulator has reduced prices with retroactive effect for the 2013–2016 period. Swisscom is weighing its decision on filing an appeal with the federal administrative court.

In a development that will bring cheers to consumers in Switzerland, the country’s telecom regulator, the Federal Communications Commission (ComCom) has retroactively cut some regulated prices after concluding that some of its prices were too high.

“Responding to requests from Sunrise and Salt, the Federal Communications Commission has reviewed the prices charged for the regulated telecoms services offered by Swisscom. In many cases, these prices have been reduced with retroactive effect for the 2013–2016 period,” said ComCom in a statement.

Incidentally, ComCom made the move after calculating prices on the basis of modern fibre-optic technology rather than conventional copper cabling as in the past. It was the first time that it took this approach.

Swisscom is pondering whether it would file an appeal an appeal with the federal administrative court.

Swisscom, a Swiss government-controlled telecommunications company, stated it has already built financial reserves for the case and has reaffirmed its 2019 outlook. Despite this prepareness, with the news reaching the market, its shares turned negative by 0.4%.

Swisscom had determined that rates for unbundled copper subscriber lines should have been some 10–25 percent lower than those offered by Swisscom, while rates for carrier line services were to be reduced by between 65% and 80%.

The regulator saw no problem with cable duct prices but lowered average costs for network interconnection by around 10%.

Swisscom took issue with some of ComCom’s conclusions. “It is only the reductions for leased lines of between 65 percent and 80 percent that Swisscom finds difficult to comprehend,” said the company.

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