The telecom regulator and the competition authority are putting rod in the window of the three network operators. “Round table” planned.
The times of cheap cell phone tariffs in Austria could soon be over. The reason is both the expensive 5G network expansion and the expiry of regulatory requirements for so-called virtual mobile network providers (MVNOs), which in recent years have caused price competition in the cheap segment. The telecom regulator and the federal competition authority suspect that the three network operators “no longer want to hurt each other” and are announcing intensified market analyzes.
Klaus Steinmaurer
“The motto can only be: Fight off the beginnings. I want to avoid that the competition in mobile radio falls asleep”, said Telecom regulator Klaus Steinmaurer on the occasion of a joint press conference with BWB boss Theodort Thanner on Thursday. He pointed out that the price war in mobile communications had recently been limited to low-cost providers such as HoT or Spusu, while between the three network operators A1, Magenta and Drei there were “worrying developments” that competition was being restricted.
Magenta boss Andreas Bierwirth recently said in a KURIER interview that the operators are now concerned with taking the high investment costs for the 5G network expansion into account.
Austria has not been one of the EU countries with the cheapest mobile phone tariffs for a long time. even if the network quality is one of the highest.
BWB boss Thanner also sees the competition “in danger”: “The MVNO were the pike in the carp pond. And we hope that it will stay that way in the future”. As a supervisory authority, the BWB will therefore focus specifically on the mobile communications industry and pay close attention to price developments. A few years ago, the BWB took a close look at the service fee charged once a year by the network operators, because price agreements were suspected here. The investigation did not bring any evidence of antitrust violations, Thanner said. It is a classic “showcase cartel” in which the companies react to measures taken by their competitors.
round table
As a first measure to maintain the competition, Steinmaurer and Thanner will invite the heads of A1, Magenta and Drei as well as representatives of the MVNO to a “round table”. A date for this has not yet been set, it said. Steinmaurer also referred to the new Telecommunications Act, which is due to come into force this year, in which further regulations are provided to ensure competition.
