The Finnish Communications Regulatory Authority (FICORA) on Thursday announced it will attempt to spur competition in the broadband market by lowering the wholesale prices of telecommunications service providers by 28–80 per cent.
FICORA said it will impose a three-year price ceiling on the fibre local loops provided by DNA, Elisa and Telia, which collectively account for 90 per cent of the local loop market in Finland.
The three leading telecommunications service providers were ruled to have impeded competition in the broadband market with their excessively high wholesale prices. “Targeting the fibre prices of these operators with ex-ante regulation benefits the market and society the most,” views Kirsi Karlamaa, the director-general at FICORA.
FICORA also stated that it will promote the efficient use of existing networks by obliging all significant service providers to provide regulated wholesale products to other telecommunications companies on non-discriminatory and transparent terms.
Regulations governing copper local loops will contrastively be streamlined. FICORA highlighted that even though copper networks continue to serve a large part of the population, the demand is on the decline and service providers are scaling down their investments in copper technology. Another reason for the regulatory streamlining is that service providers have committed to maintaining stable copper local loop prices through self-regulation.
Johanna Juusela, a director at FICORA, reminds that a more competitive operating environment should also encourage telecommunications service providers to make investments.
“Promoting competition means first and foremost promoting freedom of choice and the availability of reasonably priced broadband services to companies as well as citizens,” she says in a press release from FICORA.
The decisions will enter into effect in three months.
Aleksi Teivainen – HT
Photo: Emmi Korhonen – Lehtikuva