3 reports TeliaSonera over flat fixed line tariff

11 Aug 2005

Hutchison Whampoa’s Swedish subsidiary Hi3G Access has reported TeliaSonera to the country’s competition watchdog after the latter launched a controversial flat-rate fixed line tariff with no per minute call charge. In what could develop into a landmark case, 3 is challenging the existing EU regulatory framework, which currently regulates the fixed and mobile sectors independently. But 3’s case proves that there is growing sense that the fixed and mobile markets are increasingly acting as one. If the cellco wins its case, it could have wider ramifications for the industry, making part of the EU legal landscape out of date. While mobile network operators are increasing their substitution strategies in an attempt to stabilise APRU levels, former fixed line monopolies are responding by introducing unlimited fixed voice plans to try to stop customers from ‘cutting the cord’ and going over to wireless alternatives.

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