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Price-cap for TDC's end-user services

24. september 2003

Journal nr.3/1158-0100-0690TPH/ISA The Council meeting 24 Septebmer 2003

Pursuant to the latest changes to the sector specific regulation of the Danish telecommunication markets, TDC’s fixed line minute charges are no longer subject to price regulation. Price-caps on TDC’s monthly subscription fees for PSTN and ISDN as well as call set-up charges however are to remain fixed at their current levels and are no longer subject to mandatory yearly reductions.

The Competition Council thus no longer has to report to the National IT and Telecom Agency whether TDC’s minute charges, monthly subscription fees, and call set-up charges are set in accordance with the Danish competition Act.

The National IT and Telecom Agency will continue to regulate maximum prices for directory enquiry services (tel. no. 113 for enquiries on foreign telephone numbers and tel. no. 118 for enquiries on domestic telephone numbers) as well as maximum prices for technical assistance on costumers’ premises and one-off fees for installation of telephones. The Competition Council will continue to report to the National IT and Telecom Agency on the pricing of the above-mentioned services.

A price increase from DKK 1.75 per minute to DKK 2.00 per minute for calls to the domestic directory inquiry service has been proposed. Minute charges for calls to the international directory services are proposed to increase from DKK 9.95 to DKK 13.00 during peak hours.

Proposed price increases for technical assistance and price reductions for installation of telephone lines will together with the above-mentioned price changes yield an expected cost neutral rebalancing of prices for an average costumer.

The competition authority assesses that the proposed price changes do not distort competition or in any other way are inconsistent with the competition act.