Swisscom wins partial leased line victory

Swiss incumbent Swisscom yesterday pledged to review its leased line pricing after a domestic court upheld a decision by regulator ComCom regarding the telco’s market dominance.
The Federal Administrative Court agrees with the regulator that Swisscom’s dominance of all transmission technologies and Ethernet services available on leased lines means the incumbent must offer access to competitors at cost price. However, the court partially upheld a Swisscom appeal by calling for ComCom to review what the price should be.
Swisscom appealed the regulator’s original decision, made in March 2010 following a complaint by rival Colt Telecom Services over the cost of leased lines between 2007 and 2009. The telco accused ComCom of over regulating the market, because rival operators and electricity companies also have infrastructure suitable for leasing in many regions of the country.
The court ordered the pricing review after ruling ComCom incorrectly calculated the fee, and also limited the changes Swisscom must make to existing installations and services.