The Telekom-Control Commission continues close observation of Telekom Austria's promotional offers

Press release dated 14 October 2008

In September 2008, Telekom Austria (TA) sent its wholesale partners special offers for xDSL bitstream products and unbundling ("WS-Herbstaktion 2008" and "ULL Special Deal 2008"). These offers included special terms with regard to the fees to be paid by TA's wholesale partners as well as details on technical parameters (e.g., bandwidth).

We can therefore assume that special offers will also be available on the retail market (bundled products consisting of fixed-link telephony, mobile telephony and Internet access) in the near future.

On October 13, 2008, the TKK deliberated on these wholesale products with regard to potential future distortions of competition due to TA's special offers. On the basis of the information currently available, the TKK does not suspect a violation of existing regulatory rules on TA's part.

The TKK had already instructed RTR to examine Telekom Austria's conduct in September. Upon the launch of any special offers made by TA at the retail level, the TKK will also carefully review compliance with all relevant requirements imposed by official decisions, in particular whether TA's wholesale partners can replicate the bundled offers without encountering a margin squeeze. In this context, the price-based differentiation of new and existing TA customers is not a regulatory requirement and will therefore not be among the standards for such a review.

If necessary, the TKK will take measures in the course of a legal supervisory procedure.