Tuesday, February 28, 2012

Telefonica is fined £ 6.3 million for anti-competitive practices

In the final decision and unanimously denied after the appeal and request for reconsideration, the Board of Anatel, the meeting of February 15, applied to Telefonica fine of $ 6.3 million for anticompetitive practices in the wholesale market in process proposed in 2006 by Telcomp and only approved now.

"The amount of the fine - although significant - is tiny compared to the damagecaused to the consumer over the years, because of the delay that this type ofanticompetitive means to expand the market," says John Moura, Executive Chairman of TelComp (Brazilian Association of Service Providers Competitive Telecommunications).

"This request for determination found the practice of discounts so prohibited by the Regulation of Industrial Operations of dedicated lines (EILD) and that onlybenefited its affiliates to the detriment of other operators," adds Moura.

According to Telcomp, operators more competitive by investing in their own networks, always depend on the rental of parts to complete their networks andmeet their clients, mainly in what is called the "last mile" (access to the user's home).

The local utility has control of access to these networks, physical or economicreasons, can not always be duplicatedFor this reason the LGT and the Anatel set the regramento for such access in order to enforce the original principles that guided the privatization of telecommunications in BrazilThese guides for the privatization of Brazilian telecommunications as LGT:

. Non-discriminatory accesspricing and fair and reasonable conditions, to support infrastructure and telecommunications networks;

. Reducing barriers to entry;

. Sealing the cross-subsidies;

. Incentives diversification in service offerings.

The "wholesale marketis the instrument that allows all companies togetheremploy the use of existing networks and thus rationalize investments, contributing to increased productivity and overall efficiency. If the wholesale market does not workthe competition does not evolve as a fact. Currently the Anatel is completing the update of the Regulation on Industrial Exploitation of dedicated lines (EILD), which is the main element of the wholesale market for telecommunications in Brazil.

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