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Press release

Swisscom to reduce interconnection charges by around 5 per cent

11 October 2005

Swisscom is to reduce its interconnection charges in 2006 by an average of 5 per cent. Interconnection regulates connectivity between Swisscom's telecoms networks and those of other network operators. With this latest reduction, Swisscom's interconnection charges remain within the European average and also reflect Swisscom's commitment to implementing the prevailing regulatory provisions in a fair, transparent and consistent manner.

Swisscom has been offering cost-oriented interconnection charges since 1998; since 2000 these have been calculated using the Long Run Incremental Costing (LRIC) method. Depending on the services offered, the new cost calculations for 2006 will result in price reductions of up to 15%. The prices contain only the additional costs generated by interconnection services and no profits. The cost-modelling method used by Swisscom is based on international practice and sound costing principles. The decrees issued by the Federal Communications Commission (ComCom) on 10 June 2005 concerning interconnection prices between 2000 and 2003 are still pending decision by the Federal Court. Swisscom sees no reason to change its costing method before such time as a legal decision has been made by the Federal Court.

Interconnection prices (see table at the end of this press release) vary according to service and usage. Based on the effective traffic distribution (standard rate 43%, off-peak rate 57%) and an average call duration of four minutes, the average cost for regional termination in 2006 will be 1.07 cents a minute.

 

 

Current interconnection charges (in cents)

  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
Minute charge for 4-minute 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
Minute charge for 4-minute call  2.47  1.23  1.75

 

Charges (in cents) as per Swisscom LRIC proposal effective 1 January 2006

  Standard rate Off-peak rate Average
Traffic distribution   43%  57%  100%
Regional termination      
Charge per minute  1.24  0.62  0.89
Call Setup  1.05  0.52  0.75
Minute charge for 4-minute call  1.50  0.75  1.07
National termination      
Charge per minute  1.76  0.88  1.26
Call Setup  1.31  0.66  0.94
Minute charge for 4-minute call  2.09  1.05  1.50

Kontakt

Swisscom AG
Media Relations
3050 Bern

media@swisscom.com