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Puzzling 3G Decision in Denmark

21st September, 2004

Europe : SONOFON is puzzling about the Competition Agency's decision to allow 3G telephony providers to make 12 month contracts with customers. This should also apply to the other parts of the mobile market. Anything less would seriously distort competition.

"It is very surprising that such a big change in the market, and one that so distorts competition, should have been made without consultation with the sector and the telecoms regulator," says Allan Koch ( inset above ), Executive Vice President SONOFON who is responsible for regulatory affairs. He points out that in several areas, today's statement from the Competition Agency raises more questions than answers.

In making its decision, the Competition Agency stresses that maximum contracts in countries that have them for mobile phones are generally for 12 months.

"SONOFON has long argued for the advantages of introducing 12 month contracts throughout the mobile market. It would enable us to offer customers lower calling rates and better products instead of spending money on high commission rates for handsets. We expect that the Competition Agency's argument for extending the minimum contract for 3G telephones will naturally also apply to the rest of the mobile market and that current legislation in this area will be amended. Anything less would be deeply problematic," says Allan Koch.

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