TeliaSonera Finland reaches agreement with Elisa and Finnet on mobile interconnection fees
TeliaSonera Finland Oyj has reached an agreement with Elisa Matkapuhelinpalvelut Ltd and Finnet Networks Ltd concerning mobile communications interconnection fees *. The agreements are the result of bilateral negotiations between TeliaSonera Finland and Elisa and TeliaSonera Finland and Finnet. According to the Finnish Communications Regulatory Authority the common view perceived by the operators enhances the functionality of the telecommunications market.
From June 1, 2005, TeliaSonera Finland will collect mobile interconnection fees of 6.8 cents/min from Elisa and Finnet (previously 8.4 cents/min). TeliaSonera Finland estimates that the new pricing scheme will not have a significant impact on the EBITDA of its mobile operations.
Following the agreement, Elisa Matkapuhelinpalvelut Ltd will withdraw the claim for restitution and damages it filed against TeliaSonera Finland Oyj in February 2005 concerning mobile interconnection fees. Similarly, TeliaSonera Finland will withdraw the arbitration proceedings it started in the Court of Arbitration in February 2005 concerning the mobile network interconnection agreements between the parties. TeliaSonera Finland will also withdraw the claim for damages it filed in the Helsinki District Court against Elisa Matkapuhelinpalvelut Ltd in November 2004 concerning infringement of a patent owned by TeliaSonera Finland. All parties agreed to withdraw their claims regarding interconnection fees. After these agreements, TeliaSonera Finland no longer has any interconnection fee-related claims against Elisa and Finnet, and they have no claims against TeliaSonera Finland.
As part of the total solution, the parties agreed that TeliaSonera Finland would pay Elisa 30 million euros and Finnet 12.5 million euros in compensation. TeliaSonera Finland committed to grant Finnet 5 million euros’ worth of mobile operations billing free of charge. TeliaSonera Finland has previously reserved 17.5 million euros for backdated compensations. The company will record the remaining amount, 30 million euros in total, as a one-time expense in its Q2/05 results.
*’Interconnection fees’ are charges collected by a network operator for connecting incoming calls from another operator’s network to the subscriptions of its own network, or for connecting calls from the subscriptions of its own network to another operator’s network.