Telekomunikacja Polska (Polish Telecom) abused its dominant position in relation to lessees of infrastructure used e.g. to transmit telephone, television, radio or Internet signals. The President of the Office of Competition and Consumer Protection in two decisions confirmed the use of prohibited practices by the operator and imposed two sanctions totalling 23.5 million zloty

The President of UOKiK conducted two antimonopoly proceedings against TP, with respect to access to the infrastructure used to transmit telephone, television, radio or Internet signals (technical channels). The first proceeding was initiated at request of a cable television operator Centrum Telewizji Kablowej “Jim-Sat” from Gorzów, which leases from TP teletechnical equipment in Słubice. During the investigation, the Office found out that TP is the only entity providing such services.

In the opinion of the President of UOKiK, the company abused its dominant position and forced the lessees of teletechnical infrastructure to accept onerous contractual terms. For instance: TP in a draft new contract proposed to “Jim-Sat” reserved the right to change the price at any time, by any amount and without quoting a reason. Besides, Telekomunikacja Polska obliged the lessee to use the teletechnical infrastructure in such a manner, that will not result in losing revenues by TP in favour of third parties. In the opinion of UOKiK, both are practices restricting competition and bringing unjustified revenues to Telekomunikacja Polska. The President of the Office ordered to discontinue the practices and imposed a penalty of  9 434 million zloty.

The other decision was issued in connection with a proceeding that the Office started in effect of complaints by lessees of teletechnical infrastructure all over Poland. They charged TP with introducing in 2002 it introduced new, higher and - in the opinion of the complainants - excessive and unfair lease prices. In its new calculation, Telekomunikacja Polska took the contract duration as the only criterion do discriminate lease prices. TP did not allow the fact that the teletechnical equipment was used by a few lessees (including Telekomunikacja Polska itself).

In connection with the antimonopoly proceedings and also taking into consideration proposals of cable TV operators, in October 2003, TP modified the rules applying to calculating prices for lease of the equipment. The company made it depending on the extent to which the operator occupies the teletechnical chamber with its cables in four categories -  25 percent, 50 percent, 75 percent and 100 percent. During the proceeding, the Office found out that such price determination was not fair. On one hand it was because TP was not able to calculate exactly how much space in the teletechnical chamber is occupied by cables of one operator. Secondly - in the opinion of the President of UOKiK - the rent determination in accordance with the four categories results in prices not adequate to the provided service as the cables sometimes occupy less than 1% of the chamber. The Office also questioned the fact, that TP charged a fixed fee when signing the contract, regardless of local conditions.

The President of UOKiK ordered, that such practices be discontinued and imposed on TP a sanction of 14 150 thousand zloty.

Both decisions may be appealed to the Court of Competition and Consumer Protection.

Teletechnical infrastructure is built primarily in city centres and it is held by such operators as: Telekomunikacja Polska, Telekomunikacja Kolejowa, Telefonia Cyfrowa Dialog, or Tel-Energo. UOKiK found out that TP holds a dominant position in the market of leasing such infrastructure. This is due to the network length at its disposal and the number of lease contracts.

Additional information:
Elżbieta Anders, Spokesperson of UOKiK
International Relations and Communication Department
Office of Competition and Consumer Protection
Pl. Powstańców Warszawy 1, 00-950 Warsaw
Ph.: (+48 22) 827 28 92, 55 60 106, 55 60 314
E-mail: [SCODE]ZWFuZGVyc0B1b2tpay5nb3YucGw=[ECODE]