Legal basis for unbundling the local loop
Biel-Bienne, 12.11.2003 - The Federal Council intends to place unbundling of the local loop in telecommunications, which was decided on in February this year, on a solid political basis. It has adopted a corresponding message on amendments to the Law on Telecommunications (LTC) and submitted it to parliament. The amendments give Swisscom's competitors direct access to households. In addition, instruments which ensure effective competition will be strengthened and consumer protection and the protection of personal data will be improved.
In spring this year the Federal Council modified the Decree on Telecommunications Services (DTS) which entered into force on 1 April. This made possible the immediate unbundling of the local loop (opening up of the last mile) for all participants on the telecommunications market in Switzerland. However, in order to place this far-reaching market liberalising step on a solid political basis, it was decided to incorporate unbundling into the ongoing revision of the Law on Telecommunications. In this way the Federal Council is also fulfilling a requirement of the parliamentary commission of experts.
Last mile / local loop
Under the amended Law on Telecommunications, access to the telecommunications market will no longer be dependent on state authorization. Telecommunication services providers will merely be obliged to notify the competent body, the Federal Office of Communications (OFCOM), of their planned activity. However, licences will continue to be required for the obligation to guarantee the universal service and for use of the radio frequency spectrum. Furthermore, all telecommunication services providers will continue to be subject to supervision by OFCOM.
Transparent and non-discriminatory access to services and equipment
According to the bill, market-dominant telecommunication services providers may be obliged to offer transparent and non-discriminatory access to their services and equipment at cost-based prices. As examples, the bill cites unbundling of the local loop – opening up the so-called last mile – (fully unbundled access and common access to the subscriber loop), fast bitstream access and leased lines, which the Federal Council has already introduced at the decree level with effect from 1 April 2003.
Depending on technological and economic developments, other access obligations may be imposed on market-dominant providers, with regard not only to the traditional telephone network but also to other fixed or mobile telephone networks. Access to the services of the market-dominant provider would also enable applicants to resell these services – e.g. the subscriber telephone connection. Implementation of these obligations will remain unchanged: in particular, it will be up to the parties concerned to negotiate their access agreements. If they fail to reach an agreement, only then will the Swiss Federal Communications Commission (ComCom) be asked to intervene, after it has commissioned an appraisal of market dominance from the Competition Commission.
Better consumer protection
Part of the bill is concerned with consumer protection and the protection of personal data. In particular, it is intended to set up an arbitration body in order to settle disputes between customers and providers of telecommunication services or value-added services in a simple and rapid manner. OFCOM may entrust the establishment of such a body to the telecommunications industry. In addition, the federal law against unfair competition is to be supplemented with a ban on unsolicited mass advertising (spamming).
The telecommunications market was liberalised on 1 January 1998. As a result of opening up the market, prices have fallen considerably and consumers now enjoy wider choice. The bill closes those gaps which do exist. It is based to a large extent on the new legal framework of the European Union, which entered into force in the member states on 25 July 2003.
Address for enquiries
Press service OFCOM, 032 327 55 50
Publisher
Federal Department of the Environment, Transport, Energy and Communications
https://www.uvek.admin.ch/uvek/en/home.html
