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Telecommunications: Commission to investigate prices charged by incumbent operators for international telephone calls

United Kingdom
27/10/1998
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The Commission is to carry out further investigations into prices for international phone calls paid to the following seven dominant telephone operators: OTE of Greece, Post & Telekom Austria, Postes et Télécommunications Luxembourg, SONERA (formerly Telecom Finland), Telecom Eireann, Telecom Italia and Telecom Portugal. The Commission opened procedures in Autumn 1997 concerning European operators with a potentially dominant position with regard to accounting rates (transfer prices) charged to forward international calls. Following a preliminary assessment of the first round of questions, it appears that the international accounting rates charged within the EU by the seven operators may result in excessive margins.

The investigation focuses on intra-Community calls. The Commission has not decided for the moment whether to extend its procedures concerning routes to non-EU countries. Rules on this are subject to international negotiations which should be finished by the end of 1998. The Commission will then decide whether an investigation under competition rules of inter-operator agreements on those routes is required.

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