Telenor regrets PT decision

Press release
Fornebu
3 minute read
Telenor Mobil regrets the decision from the Norwegian Post and Telecommunications Authority (PT) regarding the arbitration case between Telenor and Teletopia, which concerns access to connect an own SMS switch to Telenor Mobil's network. This represents a distinctively Norwegian price regulation of SMS-services. Telenor will consider filing a complaint to the Ministry of Communication over the decision.

In the decision, PT determines a price of NOK 0,30 per SMS-message. Such a price determination would imply an indirect price regulation of SMS-messages. Telenor Mobil will maintain that a regulation of this nature is not founded on today's legal framework. It is a regulation that takes no precedence from other countries, and which may have far-reaching consequences for Telenor Mobil and the Norwegian mobile market.

PT's notice also states that Teletopia will have access, free of charge, to all of Telenor's 2,4 million customers. This is a customer base that Telenor has meticulously built up, at a cost of billions of NOK.

"We firmly disagree with PT's interpretation of the regulations in this case. Furthermore, the decision falls into line with a number of cases where prices have been determined without any reference to commercial evaluation, and where little regard has been shown to Telenor Mobil's historical or future investment costs. These are, to a large extent, distinctively Norwegian regulations, which are practiced differently in other countries that have a similar regulatory framework. Telenor Mobil is, and has been, an international leader in mobile communication. We also play a major role in Norway's ICT-industry. We are seeing large parts of our earnings disappear due to such new regulations, a situation that might jeopardize Telenor's and Norway's opportunities to maintain an ICT-industry. For the political authorities, this situation should give rise to concern," said CEO of Telenor Mobil, Ingvild Myhre.

The deadline for a formal complaint on the decision is three weeks.