2006-07-04

Anti monopoly ruling can make way to cheaper broadband in Sweden

The Swedish company Telia Sonera, that under the name of "Televerket" was the government agency for the upholding of the telecommuncations monopoly. On July 1, 1993, the Swedish Parliament transformed it into a company under the name of Telia, and thus Sweden became the first European country to deregulate the telecom market, although Telia maintained in their monopoly position for a few years.

Nowadays we have several players on this market. But Telia Sonera, as it is now called, has had a very strong position, owning alot of the infrastructure, the cables and so on, that competitors had to rent themselves in to.

However, this might change now, as the administrative court of appeals (Kammarrätten) ruled that Telia Sonera has to give their competitors the same possibilities as themselves to use their infrastructure, in other words, to let them in without any terms that lowers their access or competitive possibilities. This is reported by Swedish daily Dagens Nyheter.

According to one of these competitors, Glocalnet's CEO Martin Tivéus, this might mean price reductions on broadband connections with up to 1,000 SEK a year.

Today there is a large difference in prices for broadband. In areas where we use the Telia net we have to, for example, charge a 100 SEK more for our 8 mbit service than in other areas. The decision means that we can lower the prices for a little more than half of the broadband customers in Sweden, says Martin Tivéus.


Finally there is some positive decisions made from the judicial system regarding the tech area, after so many setbacks and harassment from our legal system, it feels good to have some good news as well. It can't be said strongly enough what it means for development that society steps in and tries to stop private monopolies on tech development and the fact that a large segment of the population will have access to cheaper internet access.

We'll see what happens if and when Telia Sonera appeals to this decision.

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