Telekom-Control Commission publishes draft measure on unbundling fees: Reduction from EUR 10.90 to EUR 10.70

Press release dated 1 December 2005

In its session on November 28, 2005, the Telekom-Control Commission (TKK) released a draft measure defining unbundling fees for public consultation. The draft measure proposes a reduction in the proposed monthly charge for an entire local loop (i.e., subscriber line) from EUR 10.90 (net) to EUR 10.70 (net). "The bottom-up model was used to calculate the amount of the fee, as this method – in contrast to other models – accounts for replacement values and therefore best fulfills the efficiency standard required in the market analysis procedures,“ comments Georg Serentschy, RTR's Managing Director for the Telecommunications Division, on the draft measure. "The general use of the bottom-up model was confirmed by a ruling of the Austrian Administrative Court,“ he further explains.

The draft also provides for a reduction in the monthly fees for subsections of the local loop. The ongoing monthly charge for cables in buildings will remain unchanged at EUR 0.00.

Regulations adapted for collocation fees

The regulations pertaining to collocation space rental fees will remain at similar levels, but the reference price has been defined more precisely. The objective standard measure in this case is the real estate price index. For any adaptation expenses for collocation spaces, the unbundled local loop rental fee is reduced by 50% compared to the reference amount.

In order to ensure that these obligations are observed by the parties involved, penalties (payable daily) are defined for delays or violations of the relevant provisions. The draft measure maintains these penalties at their previous level.

The draft measure will be subject to public consultation under Art. 128 of the Austrian Telecommunications Act 2003 (TKG 2003) until January 2, 2006. The regulatory authority is expected to issue a final decision in early 2006.