Bundesverwaltungsgericht BVGER (Tribunal administrativ federal) decides as the court of last resort in the IP interconnection (peering) case pro Init7 and pro open and discrimination free internet.
The cartel of Deutsche Telecom and Swisscom until January 2016 has been sanctioned. ComCom needs to decide about a price for cost oriented peering.
Details in our press release (German only).
https://drive.google.com/open?id=13nMQkj1abja-3cPBiQWiZaybsFIUkWa5
We are very happy that this case is now over. It took seven years, it all started 2012 when Swisscom tried to make us pay for peering.
Besides, as ComCom is going to decide about IP peering, we believe the court order will have an impact the peering landscape beyond Switzerland.
Apologies: here is the correct link to our press release:
https://drive.google.com/open?id=1WSAmAQRBsdllyMMq7_FIeuE_-630ETL2
On 29.04.20 10:12, Fredy Künzler wrote:
Bundesverwaltungsgericht BVGER (Tribunal administrativ federal) decides as the court of last resort in the IP interconnection (peering) case pro Init7 and pro open and discrimination free internet.
The cartel of Deutsche Telecom and Swisscom until January 2016 has been sanctioned. ComCom needs to decide about a price for cost oriented
peering.
Details in our press release (German only).
https://drive.google.com/open?id=13nMQkj1abja-3cPBiQWiZaybsFIUkWa5
We are very happy that this case is now over. It took seven years, it all started 2012 when Swisscom tried to make us pay for peering.
Besides, as ComCom is going to decide about IP peering, we believe the court order will have an impact the peering landscape beyond Switzerland.
For your reference I run our press release through deepl.com... so here is the result:
==> Our press release in German:
https://drive.google.com/open?id=1WSAmAQRBsdllyMMq7_FIeuE_-630ETL2
Translated with www.DeepL.com
Init7 wins peering case against Swisscom
Federal Administrative Court overturns ComCom decision
On 22 April 2020, the Federal Administrative Court (BVGER) handed down a landmark decision in the IP interconnection ("peering") proceedings of Init7 against Swisscom, which have been ongoing since 2013, which confirms the validity of the complainant Init7.
Init7 demanded that Swisscom continue a peering agreement concluded in 2011 on a zero-settlement basis (i.e. each partner bears its own costs). Swisscom had terminated this contract in 2012 and, undermining the "polluter pays" principle and the telecommunications law obligation to grant cost-oriented prices, demanded massively excessive compensation for peering from Init7. Init7 defended itself against this.
In its judgement, based on several expert opinions of the Competition Commission (WEKO), the BVGER came to the conclusion that Swisscom was dominant - quote: "The respondent has a technical monopoly for access to its end customers". The court thus overturned the decision of the ComCom lower instance and ruled in favour of Init7 . ComCom must now set the cost-oriented price for peering.
As with voice interconnection, this price for peering will be zero or close to zero. This means that Swisscom's additional demand of CHF 550,000 to Init7 is off the table. Init7 will also save the procedural costs of CHF 126,400 still imposed on it by the previous instance.
The Federal Administrative Court's remarks are primarily relevant to an illegal cartel which Swisscom operated together with Deutsche Telekom (DTAG) until January 2016. It was ended thanks to the proceedings of Init7 under pressure from the WEKO after a preliminary investigation. The cartel enabled Swisscom to participate financially in the IP transit capacity sold by DTAG (revenue share).
However, the ruling has a more far-reaching effect: In future, it will no longer be possible for providers with a strong market position and many broadband customers to artificially increase the price of IP interconnection through competitive agreements and to make it more difficult for smaller providers to access their customer base. The ruling is therefore significant in the fight for an open and discriminatory free Internet and should have an impact beyond Switzerland. This too, because it shows the telecom regulators once again that their laissez-faire attitude is out of place vis-à-vis providers with market power in the area of peering.
The text of the judgement can be downloaded here (PDF, 42 pages, 31.7 MByte).
https://drive.google.com/open?id=13nMQkj1abja-3cPBiQWiZaybsFIUkWa5
Translated with www.DeepL.com/Translator (free version)
On 29.04.20 10:40, Fredy Künzler wrote:
Apologies: here is the correct link to our press release:
https://drive.google.com/open?id=1WSAmAQRBsdllyMMq7_FIeuE_-630ETL2
On 29.04.20 10:12, Fredy Künzler wrote:
Bundesverwaltungsgericht BVGER (Tribunal administrativ federal) decides as the court of last resort in the IP interconnection (peering) case pro Init7 and pro open and discrimination free internet.
The cartel of Deutsche Telecom and Swisscom until January 2016 has been sanctioned. ComCom needs to decide about a price for cost oriented peering.
Details in our press release (German only).
https://drive.google.com/open?id=13nMQkj1abja-3cPBiQWiZaybsFIUkWa5
We are very happy that this case is now over. It took seven years, it all started 2012 when Swisscom tried to make us pay for peering.
Besides, as ComCom is going to decide about IP peering, we believe the court order will have an impact the peering landscape beyond Switzerland.
Fredy,
Congratulations with such an amazing win!
This might just provide the possibility of smaller ISPs to actually have an honest competition to the big established market monopolies. The future will tell what this will change.
That this took 7 years though, could have been a killer for a small company. Fortunately they granted the preliminary solution earlier, otherwise it would likely have been impossible to compete in anyway and you would have been pushed out of the market.
Thanks for fighting the good fight! Very much appreciated.
Regards, Jeroen
--
On 2020-04-29 10:12, Fredy Künzler wrote:
Bundesverwaltungsgericht BVGER (Tribunal administrativ federal) decides as the court of last resort in the IP interconnection (peering) case pro Init7 and pro open and discrimination free internet.
The cartel of Deutsche Telecom and Swisscom until January 2016 has been sanctioned. ComCom needs to decide about a price for cost oriented peering.
Details in our press release (German only).
https://drive.google.com/open?id=13nMQkj1abja-3cPBiQWiZaybsFIUkWa5
We are very happy that this case is now over. It took seven years, it all started 2012 when Swisscom tried to make us pay for peering.
Besides, as ComCom is going to decide about IP peering, we believe the court order will have an impact the peering landscape beyond Switzerland.