OPTA leaves existing KPN discounts unchanged

OPTA has decided not to amend its current policy for the assessment of KPN’s scope for discounts. The reason for this lies in the uncertainty surrounding the introduction of new telecommunications legislation. In addition, consultations with the market have revealed that an extension of KPN’s discounting potential could lead to a situation in which competing telephone companies could leave the market.

When making its decision, OPTA relied heavily on the fact that the legislation will be changing drastically. At present it is not yet clear what this will mean for the future regulation of tariffs. OPTA has therefore decided that far-reaching changes would not be appropriate now. They could produce too much uncertainty for the market. Moreover, OPTA wishes to ensure that competing telephone companies do not have to contend with a price squeeze. This occurs where a telecommunications company is squeezed between the tariffs which KPN charges for the use of its network (procurement) and the end-user charges for which it bills its own customers.

The same applies to the regulation of the procurement tariffs which apply in the case of KPN’s competitors. In this respect, OPTA has previously ruled that it would not set long-term terminating tariffs. In this case, too, there is uncertainty about the nature of the new legislation.

The existing discount framework for KPN in the consumer market will remain unchanged but no new discounts will apply now.