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Press release

Swisscom opposes ComCom decision

14 June 2005

Within the framework of the interconnection rulings in favour of TDC Switzerland AG (sunrise) and MCI WorldCom AG, the Federal Communications Commission (ComCom) is retroactively cutting interconnection charges for the years 2000 to 2003. In doing so, ComCom is to a large extent confirming its decision of 6 November 2003. Swisscom is to lodge an appeal with the Federal Court against the two ComCom decisions.

Both ComCom decisions require that Swisscom reduce its interconnection charges by around 30%. The decisions concern interconnection charges for the years 2000 to 2003 and apply only to TDC Switzerland AG and MCI Worldcom, which filed an objection in 2000 with ComCom concerning the terms and conditions for interconnection services.

On 6 November 2003, ComCom decreed that Swisscom had to reduce the interconnection charges for its two competitors by 25 - 35%, retroactive for the years 2000 to 2003. Swisscom lodged appeals with the Federal Court against the two decrees. The Supreme Court revoked the ComCom decrees on 1 October 2004 for formal reasons and referred the matter back to ComCom for re-evaluation.

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, by up to 7% at the beginning of 2005, for instance. These charges lie around the European average.

Competitors benefit from Swisscom network services

Interconnection does not refer to the unbundling of the last mile but enables alternative telecoms providers to use parts of the Swisscom network and thereby offer their customers telephony services throughout Switzerland. Interconnection charges only contain the relevant costs. LRIC is the legally prescribed price calculation method.

For example: The fixed network interconnection charges valid since 1 January 2005 amount to only 1.12 centimes per minute and apply to regional termination based on effective traffic distribution (standard rate 42%, off-peak rate 58%) and an average call time of four minutes (cf. press release of 12 October 2004).

Berne, 14 June 2005


Swisscom AG
Media Relations
3050 Bern