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Press release

Swisscom to oppose ComCom decision

07 November 2003

Both ComCom decisions require that Swisscom reduce the charges for its interconnection services by 25-35%. The decisions concern interconnection charges for the years 2000 to 2003 and apply to TDC Schweiz AG and MCI Worldcom only. The two companies filed an objection in 2000 with ComCom concerning the terms and conditions for interconnection services.

Interconnection charges around the European average

Swisscom firmly believes that the interconnection charges are in line with the regulatory provisions. The charges are calculated using the legally prescribed Long-Run Incremental Cost (LRIC) method. The calculation model was extremely complex to set up and continues to be subject to further development. As a result Swisscom will contest the decisions before the Federal Court by filing a complaint through the court of administration. Since 2000 Swisscom has consistently reduced its interconnection service charges, which are around the European average.

The terms "interconnection" and "LRIC" in brief

The term "interconnection" does not apply to the unbundling of the last mile (ULL). Interconnection enables alternative telecoms providers to use parts of the Swisscom network and thereby offer their customers telephony services throughout Switzerland. For this usage Swisscom charges the telecoms providers the tariffs calculated according to the LRIC method. The interconnection charges contain the relevant interconnection costs only and do not include a profit margin. LRIC is the legally prescribed price calculation method. Calculation of the interconnection tariffs takes into account only those costs that are incurred as a result of the provisioned interconnection services.

For example: The interconnection charges valid from 1 January 2004 amount to only 1.14 cents per minute and apply to regional termination based on effective traffic distribution (standard tariff 40%, off-peak tariff 60%) and an average call time of 4 minutes (cf. press release of 30 September 2003).

Berne, 7 November 2003


Swisscom AG
Media Relations
3050 Bern