PT decision on Sense prices

Press release
Fornebu
2 minute read
Telenor ASA has today received the decision from the Norwegian Post and Telecommunications Authority (PT) on the disputed pricing in the service provider agreement between Sense Communication International ASA and Telenor Mobil AS. This decision is in line with PTs announcement as of July 23 and concludes that Telenor Mobile's new price scheme for service providers should be calculated to the effect that the total payment of volume excluding the cost of interconnection and roaming should be 25 per cent lower than the total payment based on the price scheme which applied during the period (unoff. translation).

On August 19, Telenor disputed PT's interpretation of the relevant regulations and conclusions in the case. Telenor disagrees with PT's conclusion and will consider filing a complaint to the Norwegian Ministry of Transport and Communications. In the event of a complaint Telenor will also consider to request that the effect on the decision is suspended until the complaint has been considered.

In its announcement PT argues that Telenor Mobil's pricing is not cost oriented as instructed in the present regulations. In addition PT has specified that the decision is to take retroactive effect from January 1, 2002.

The announcement is based on the disputed agreement with Sense but will also affect all of Telenor Mobil's remaining service provider agreements. If the decision should be put into force it will have an effect on Telenor Mobil's financial records for the year 2002 in the region of NOK 70 million.