FILE PHOTO: The logo of the swiss Swisscom telecommunications is seen at an office in Zurich, Switzerland on 22 November 2016. REUTERS/Arnd Wiegmann/File Photo
ZURICH (Reuters) – Switzerland is the Federal Communications Commission (ComCom) has retroactively cut regulated prices which Swisscom against rivals, the agency said on Tuesday after the close that some of his prices were too high.
“Responding to requests from Sunrise and Salt, the Federal Communications Commission has examined whether the prices charged for the regulated telecom services that are offered by Swisscom. In many cases the prices have been reduced with retroactive effect for the period 2013-2016,” he said in a statement.
The regulator made the move after the calculation of the prices for the first time on the basis of modern fiber-optic technology in place of conventional copper cabling as in the past.
Swisscom said it is considering to appeal at the federal administrative court. The government-controlled telecommunications company said that it has already built financial reserves for the case and continues to be 2019 outlook.
The shares, however, is negative, after the news and were down 0.4 percent by 0835 GMT.
ComCom has determined that the rates for unbundled copper subscriber lines must be a number between 10 and 25 percent lower than those offered by Swisscom, while the rates for carrier line services will be reduced by between 65 and 80 percent.
The supervisor saw no problem with cable prices, but lowered the average costs for the interconnect by about 10 percent.
Swisscom took issue with some of ComCom conclusions. “It is only the reduction for leased lines with a capacity of between 65 percent and 80 percent of Swisscom will find hard to understand,” the company said.
Reporting by Michael Shields; Editing by John Miller