10 million PLN penalty for TP - UKE

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10 million PLN penalty for TP

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2005-11-14

The President of URTiP has imposed a financial penalty on Telekomunikacja Polska S.A. for its failure to implement a decision on interconnection with TeleNet Mielec.

On 30 June 2003, the President of the Office of Telecommunications and Post Regulation at the request of TeleNet Mielec issued a decision which defined the terms of interconnection between TeleNet Mielec and TP (currently Multimedia Polska – Mielec Sp. z o.o.). The decision included technical parameters and principles of settlements for interconnection.

The inspection carried out in order to check if the provisions of this decision had been implemented revealed that from September 2003 to May 2004 the parties held talks with the aim to implement the decision and attempts were made to sign an agreement which was to replace the decision, however interconnection was never implemented in practice. Thus, the President of URTiP concluded that the decision was not implemented by TP and Multimedia Polska – Mielec (former TeleNet Mielec), and on 30 September 2004 issued a successive decision on infringements which specified obligations of both parties as well as time limits for remedial action.

Despite detailed instructions, an inspection carried out in April 2005 showed that:

  • Multimedia Polska – Mielec performed all obligations listed in the decision that were possible to perform without TP cooperation. The company asked TP on numerous occasions to agree on activities which were to facilitate the implementation of the remaining obligations with respect to interconnection. In the absence of cooperation from TP, the obligations could not be performed.
  • TP did not commence tests of interconnection points, despite requests and schedules submitted by Multimedia Polska – Mielec. TP explained its failure to cooperate with improper way in which lines for interconnection were laid by Multimedia Polska.

On the basis this inspection, the President of URTiP issued post inspection recommendations on 23 June 2005 in which TP was called on to implement interconnection with Multimedia Polska – Mielec within 30 days. TP did not carry out these recommendations.

The absence of defined terms of cooperation between Multimedia Polska – Mielec and TP for months hampered the development of an alternative operator. Limited possibilities to provide services by Multimedia Polska – Mielec (services provided on the whole national territory to subscribers of its own access network and to TP subscribers using a network access code) because of a protracted process to define the terms of cooperation and settlements with TP have an influence on the operator’s financial condition which has been gradually deteriorating.

According to the President of URTiP Witold Graboś: “The limitation of alternative operators’ activity by TP as seen in its ignorance towards operators’ requests and regulatory authority’s decisions means hampering the process of market liberalisation”.
Thus, in the decision of 7 November 2005 the President of URTiP imposed a financial penalty of 10,000,000 PLN on TP with respect to its failure to implement an interconnection decision of 30 June 2003.

TP has the right to appeal to the District Court in Warsaw – the Court for Competition and Consumer Protection within 14 days of the delivery of the decision by which the penalty was imposed.

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