KPN’s subscriber details are far too expensive, according to a provisional conclusion drawn by the NMa and OPTA

KPN is charging an excessively high price for the supply of subscriber details to other parties: 85 cents instead of less than one cent for the details of each subscriber. In addition, KPN is also wrongfully imposing restrictive conditions on site supply. The Netherlands Competition Authority (NMa) and the Independent Postal and Telecommunications Authority (OPTA) have come to this provisional conclusion following a joint investigation. The two regulatory authorities notified KPN of their conclusion this week. It is anticipated that a final decision will be made next spring.

NMa and OPTA launched an investigation in response to a complaint filed by Denda International of Oldenzaal.* This complaint had been filed with both OPTA and NMa. Because this complaint concerns a matter which falls within the jurisdiction of both regulatory authorities, they decided on a joint investigation.

The dispute between Denda and KPN concerns the supply of telephone subscriber details. KPN charges 85 cents for the details of each subscriber. At the time when this complaint was filed, this represented a total amount of approximately NLG 6 million. Denda on the other hand had proposed a tariff based on the proceeds from the CD-ROMs which it was to sell.

Apart from the tariff of $.85, KPN sought to impose restrictive conditions on Denda for the use of its records. Amongst other things, KPN feels that Denda should not be allowed to use the data for ‘reverse searches’ (displaying the relevant names and addresses when searching for telephone numbers). There is also disagreement about the nature of the details that are to be supplied. For instance, KPN argues that the postcode does not constitute part of the telephone subscribers’ details.

NMa and OPTA contend that, like any other telephone service provider, KPN enjoys a de facto monopoly in respect of the details of its own telephone subscribers. Under the terms of both the Competition Act [Mededingingswet] and the Telecommunications Act every telephone service provider has a duty to supply data to other parties such as Denda at a cost-oriented price and subject to non-discriminatory conditions.

Less than one cent

NMa and OPTA have provisionally concluded that KPN should be allowed to charge Denda less than one cent for the details of each subscriber. Both regulatory authorities believe that the collection of the details of telephone subscribers constitutes an integral part of the core business of ‘the provision of telephone services’. After all, it is impossible for a telecommunications company to issue bills without such details. The use of this data for purposes such as the production of CD-ROMs is viewed as a by-product of telephone services. It is for this reason that telephone service providers such as KPN must supply the details for a marginal tariff. Nevertheless NMa and OPTA believe that it is appropriate for KPN to receive a certain amount of compensation in the CD-ROM market in certain circumstances.

Obtaining telephone subscriber details is essential for companies such as Denda, otherwise they would not be able to market their products. At present KPN’s CD-Foongids [CD Telephone Directory] is still the only product of this nature on the market.

This is a joint press release of the Netherlands Competition Authority and the Independent Postal and Telecommunications Authority.