Incumbent Swisscom has said it will not challenge a regulatory ruling that declined to regard its fibre partnership with Fribourg energy supplier Groupe E as a JV.
At the end of April, the Swiss Federal Competition Commission (Weko) concluded that the…
Incumbent Swisscom has said it will not challenge a regulatory ruling that declined to regard its fibre partnership with Fribourg energy supplier Groupe E as a JV.
At the end of April, the Swiss Federal Competition Commission (Weko) concluded that the planned agreement between Swisscom and Groupe E could not be examined in the context of merger control.
According to regulators, the partnership did not meet conditions for being considered as a JV because of questions over the full-function nature of the agreement, on the grounds that it would not develop an independent business activity. The decision meant the partnership could face direct sanctions if it were to go ahead as planned.
At the time, Swisscom also warned of “significant” delays to plans to roll out its fibre network because of a lack of legal clarity.
However, in a statement on 31 May, Swisscom said: “An appeal procedure would not reduce the legal uncertainty thereby created in the foreseeable future, nor would it significantly improve the already jeopardised prospects of success for the cooperation. Groupe E and Swisscom are currently analysing whether and in what form joint expansion of the fibre-optic network in Fribourg can take place.”
Meanwhile, Swiss cable rival UPC Cablecom, which is owned by US giant Liberty Global, has reportedly criticized Swisscom’s plan to connect every household in the country to its FTTH network for wasting money.
Unlike Swisscom, UPC Cablecom is developing its existing infrastructure to offer customers faster speeds, its CEO Eric Tveter reportedly told local paper Berner Zeitung.
In addition, Swisscom is wasting taxpayers’ money through its fibre partnerships with local energy suppliers, and Weko’s ruling on one of them is to be welcomed, Tveter reportedly added.
UPC Cablecom was unable to comment before the press deadline.