Init7 vs. Swisscom: Paving the way for the future?
Init7 vs. Swisscom: Paving the way for the future?
With this ruling, ComCom has obliged Swisscom to operate interconnections with Init7 free of charge on the basis of so-called zero-settlement peering. Interconnection means connecting the networks of internet providers, content providers or companies which together form the internet. In this case, Swisscom must therefore authorise the exchange of data between its own network and that of Init7. In peering, a type of interconnection, data is exchanged between the respective customers. As the costs on both sides are comparable, no costs are regularly charged in practice. This is known as zero-settlement peering. Swisscom wanted to charge Init7 for additional costs.
After consulting the Competition Commission on peering, ComCom classifies Swisscom as a dominant company within the meaning of the Telecommunications Act, which is a prerequisite for price regulation. The regulatory authority characterises Swisscom’s transit agreements with Deutsche Telekom as unusual in the market.
The ruling is not yet legally binding and can be appealed to the Federal Administrative Court. It also only applies between Swisscom and Init7. However, it is likely that this decision will serve as a precedent in future, similar cases. The case also shows that in complex regulatory proceedings, support from specialised and experienced lawyers – such as ours – is expedient. Our experts are therefore available to advise and litigate on all issues relating to telecoms regulation.