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Press release

Swisscom to reduce interconnection charges

12 October 2004

In 2005 Swisscom will reduce interconnection charges between its own and alternative networks by up to 7 percent. This price reduction will enable Swisscom to remain within the European average and implement the current regulatory provisions fairly, transparently and consistently.

Swisscom has been offering cost-oriented interconnection charges since 1998, and has used the LRIC method to calculate them since the year 2000. The new cost calculations for 2005 will result in price reductions of up to 7% depending on the service. The prices contain only the relevant interconnection costs and no profits. The method used by Swisscom is based on international experience and academic findings. Following the Federal Court's reversal on 1 October 2004 of the interconnection decree handed down by the Swiss Federal Communications Commission ComCom on 6 November 2003, which granted cost reductions in favour of two alternative service providers, Swisscom sees no reason to change its costing practice.

Interconnection charges (for details see the table at the end of this press release) vary according to service and usage. Based on the effective traffic distribution (standard rate 42%, off-peak rate 58%) and an average call duration of four minutes, the average price of regional termination for 2005 amounts to 1.12 centimes per minute.

 

Current interconnection charges (in centimes)

   Standard rate  Off-peak rate  Average
Traffic distribution  40%  60%  100%
Regional termination      
Charge per minute  1.37  0.69  0.96
Call Setup  1.03  0.51  0.72
Charge per minute for 4-min. call  1.63  0.82  1.14
National termination      
Charge per minute  2.31  1.16  1.62
Call Setup  1.37  0.69  0.96
Charge per minute for 4-min. call  2.65  1.33  1.86

 

Charges in accordance with Swisscom LRIC offer (in centimes) from 1 January 2005

   Standard rate  Off-peak rate  Average
Traffic distribution  42%  58%  100%
Regional termination      
Charge per minute  1.32  0.66  0.94
Call Setup  1.00  0.50  0.71
Charge per minute for 4-min. call  1.57  0.79  1.12
National termination      
Charge per minute  2.13  1.06  1.51
Call Setup  1.35  0.68  0.96
Charge per minute for 4-min. call  2.47  1.23  1.75


 Berne, 12 October 2004

Kontakt

Swisscom AG
Media Relations
3050 Bern

media@swisscom.com