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Press release

Swisscom rejects Competition Commission's sanction

Berne, 16 February 2007

The Competition Committee has imposed a fine of CHF 333 million against Swisscom Mobile for alleged misuse of mobile phone termination rates. While the current rationale for the fine is essentially the same as the previous draft decrees, the sanction is significantly lower. Swisscom rejects the charge that it misused its dominant market position and the sanction. The company will dispute the ruling before the Federal Administrative Court.

In October 2002 the Competition Committee launched an investigation into the termination fees charged by the three mobile phone operators in Switzerland. Termination fees are the fees that mobile network providers charge other providers for putting through calls in their network. The Competition Committee imposed a fine of CHF 333 million for the alleged misuse of termination fees for the period from 1 April 2004 to 31 May 2005. Swisscom rejects the charge that it misused its dominant market position and the sanction.

The company will appeal the ruling before the Federal Administrative Court and, if necessary and as a last resort, before the Federal Court. Following are its key reasons for doing so:

  • Swisscom Mobile has long charged the lowest mobile termination fees of any Swiss mobile provider.
  • Swisscom receives no advantage over the other mobile phone providers as a result of the termination fees. In fact, the company has for years made net payments to its competitors Sunrise and Orange owing to lower prices and higher outgoing call volumes.
  • Swisscom Mobile is the only mobile phone provider classified as dominant by the Competition Committee. However, this is inconsistent within the European context, where all providers (or none) were assumed to have a dominant market position on the basis of call termination in their network.
  • The judgment that only Swisscom Mobile has a dominant market position is inconsistent with the Competition Committee's 20 November 2006 report to the Communication Commission, according to which the other two Swiss mobile phone providers, Sunrise and Orange, also have a dominant market position.
  • A sanction is not permissible if it is not foreseeable. Swisscom Mobile could not and cannot estimate the price level that the Competition Commission regards as non-discriminatory.

Swisscom has received the Competition Commission secretariat's earlier draft rulings. After assessing the legal situation, Swisscom concluded that a sanction of last resort is not likely and therefore made no provisions in its balance sheets.

At present, Swisscom only has the Competition Committee's judgment, not the detailed rationale. Based on the current information available to it, Swisscom abides by its previous assessment. Swisscom will review the ruling in detail.


Swisscom AG
Media Relations
3050 Bern