Telia reduces interconnection rate today

Equal terms are a precondition for competition to function in the Swedish mobile telephony. TeliaSonera therefore welcomes the National Post and Telecom Agency’s (PTS) decision that Sweden’s three major mobile operators are to reduce the interconnection rates in their mobile networks to a maximum of SEK 0.80 per minute.

Up to now, TeliaSonera has been the only Swedish operator that has been forced to maintain a low cost-oriented interconnection rate. At the same time, Tele2 and Vodafone have been charging TeliaSonera a considerably higher interconnection rate. “We have been demanding for a long time that the PTS put Swedish mobile operators on equal footing with regard to the pricing of interconnection rates. We have had an unfair competitive climate that is finally being corrected,” says Marie Ehrling, head of TeliaSonera Sweden. “The decision will result in increased competition that will enable the provision of even better services and lower prices for customers.” TeliaSonera Sweden has informed the PTS that it will follow the decision to have a cost-oriented interconnection rate, which is valid as of today, January 12, 2005, and will now charge SEK 0.80 per minute. “We assume that Tele2 and Vodafone, like TeliaSonera, will follow the decision and immediately reduce their interconnection rates, which are very high in comparison with TeliaSonera’s”, says Marie Ehrling. About interconnection: Interconnection is the term used when an operator’s customer wants to make a call to someone in another operator’s network. The calling operator reaches an agreement with the receiving operator to connect the call for his customer. To connect the call, the calling operator pays an interconnection rate.