Swiss regulator cuts LLU prices, to adopt fibre costs

News Broadband Switzerland 8 DEC 2011
Swiss regulator cuts LLU prices, to adopt fibre costs
Switzerland's Federal Communications Commission (ComCom) has reduced the price for unbundled subscriber lines by 7 percent to CHF 15.50 per month. The decision is retroactive for 2011. In addition, ComCom is reducing prices for interconnection and MDF co-location. The cost of terminating calls on Swisscom's network will drop by 15 percent, and interconnection services not charged on a usage basis will drop by up to 36 percent. The latter includes services essential for interconnection, such as setting up carrier selection or implementing new blocks of numbers. As a result of the ComCom decision, the rental cost for space in Swisscom exchanges (co-location) is also being reduced by about 2 percent. From 2013, the regulator will also use 'modern technologies' such as optical fibre as the basis for calculating operator costs and prices. As the market-dominant provider, Swisscom is obliged to provide certain services to the competitors at cost-based prices. Swisscom currently calculates its prices on the basis of copper technology. However, ComCom said it can no longer take this technology, which has since become antiquated, into account, because it does not correspond to efficient service provision. Instead it will use costs based on optical fibre technology.

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