Lower calling rates, sweet news!

Bern, Switzerland (GenevaLunch) – Mobile phone owners in Switzerland should expect to see the cost of using their phones fall, thanks to a significant cut in basic prices that Swisscom can charge its competitors.

ComCom, the federal Communications Commission, Wednesday morning announced three significant reductions, the result of careful analysis of Swisscom’s costs. The savings, ComCom argues, should be passed on to consumers, at least as greater options.

The cost cuts come in three forms: Swisscom must lower its monthly charges to competitors for access to the local loop. It must reduce by 55-85% its one-time co-location fee, paid by competitors to install their own equipment in local exchanges. And it must cut by 25-30% interconnection charges, the service most in demand and for which fees are based on usage. According to ComCom, this will make Switzerland’s interconnection fees the lowest in Europe.

Unbundling charges Swisscom was charging CHF31 a month until earlier in 2008, when it reduced the charge to CHF23.50, but Wednesday the federal Communications Commission announced that it cannot charge more than CHF18.18 a month for 2007 and 2008. The reduction is based on an analysis of how Swisscom has fixed its charge. According to ComCom the company was overestimating capital charges, using amortization periods that are too short, and its construction and operating costs were inflated. A significant improvement for businesses should result from the change, which will allow them to better plan their investments now, with stable and reliable pricing and general conditions.

Co-location and interconnection ComCom again said Swisscom has been overestimating its costs and passing these on to competitors.

Swisscom’s site, official reply 23 September

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