The President of the URTiP has cancelled fines imposed previously on TP S.A. - UKE

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The President of the URTiP has cancelled fines imposed previously on TP S.A.

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2002-05-07

On 7 May 2002, Witold Graboś, the President of the Office of Telecommunications and Post Regulation, took a decision on the cancellation of the fines amounting to PLN 350 million which had been imposed on TP S.A. by his predecessor Kazimierz Ferenc, the former President of the Office of Telecommunications Regulation.

I decided to cancel those fines after having found that the appeal raised by TP S.A. had been justified, the President of the URTiP said at a press conference. At the same time Mr. Graboś stated that as a result of the talks held between the operator and the President of the URTiP, TP S.A. had withdrawn complaints and appeals against previous decisions taken by the regulator. As a consequence, TP S.A. has become a public operator acting pursuant to the Telecommunications Authorisation No. 1/2001/Z granted on 28 February 2001, and has recognized its dominant position in the universal service and leased lines domestic markets.

An additional argument for the cancellation of the fines was a letter which the President of the URTiP had received from the operator NOM Sp. z o.o. In that letter NOM asked for the withdrawal of all the administrative proceedings against TP S.A. which had been initiated upon a complaint by NOM concerning interconnection cooperation and settlements.

The decisions taken by Kazimierz Ferenc on 25 March 2002 on imposing fines on TP S.A. were related to:

  • the fine of PLN 300 million for TP S.A. failing to implement the decision taken by the Minister of Post and Telecommunications on 15 December 2000 on detailed conditions for interconnection cooperation and settlements between TP S.A. and NOM, Niezależny Operator Międzystrefowy Sp z o.o.; and
  • the fine of PLN 50 million for releasing false data concerning TP S.A.'s revenues from leased lines. This information was necessary for the determination of TP S.A.'s market position.

At the beginning of April 2002, TP S.A. raised an appeal against both decisions by the President of the URT. After having analysed both the appeal raised by TP S.A. and the decisions, Witold Graboś, the President of the URTiP, has found that the mentioned decisions do not have economic grounds and their legal justification is also doubtful. Furthermore, according to the President of the URTiP, in such a poorly developed telecommunications market as that in Poland it is better to use such an amount of money for investment. The amount of the fines equals the cost of around 85 thousand new subscriptions.

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