Finnish regulator says it is probing broadband fees

Finland's communications regulator is investigating five telecom operators on suspicion of irregularities and illegalities in broadband wholesale pricing, it said Wednesday.

"The authority has discovered flaws and problems in the pricing of several telecom operators, and there is even reason to suspect that unlawful activity occurs in the broadband market," the Finnish Communications Regulatory Authority (FICORA) said in a statement.

An investigation requested by TeliaSonera into the monthly fees charged by rival operator Elisa for the use of its broadband network found Elisa to be charging "unreasonably high" prices for the service, FICORA said.

It ordered Elisa to slash fees to levels "based on actual costs" within three months and set price-caps for its network leasing fees.

FICORA said it began its probe into the fees of five operators in February to reduce broadband wholesale prices to "a reasonable level" and to prevent key market players from monopolising prices and thus hindering competition.

The investigation would continue until next year unless operators acted voluntarily to revise fees, it said.

(c) 2010 AFP