Norway's biggest ISP, Telenor fined 83 million €

[Mihle]

Norway's biggest ISP, Telenor fined 83 million € (788 million NOK) from Norwegian Competition Authority for abusing it's dominant position.

 

For some background info, for the longest time there was just two different mobile networks in Norway, Telenor and Telia.

 

What they did was that I they limited the creation of a third mobile Network:

Quote

The background for the case was that Network Norway was to build a third mobile network in Norway together with Tele2 in 2007.

During the development period, Telenor was obliged to provide these operators with access to Telenor's network in those areas where the third network was not fully developed.

In 2010, Telenor changed the terms of the agreement with Network Norway. These are the changes that the Competition Authority considers violates the Competition Act. The changes made it less profitable for Network Norway.

"Through the new agreement, Telenor reduced the price for the actual use of Telenor's network, but introduced a fee that increased with the number of customers. This fee did not end Network Norway with increased use of its own network. This eliminated incentives to continue the development of the third network, "says Gjermund Nese, department director.

They have also found info that it was a deliberate change to limit the creation of a new network:

Quote

"The Competition Authority has found that terms in the Telenor Access Agreement were deliberately designed to halt Network Norway's further investments in the third network," said Nese.

Telenor says they didn't do anything illegal.

 

Worth noting that Telenor operate in many different countries and does home internet too, but the fine size is only from what they have done in Norway in mobile network.

 

 

My opinion:

I don't think the fine is large enough compared to the size of Telenor, even if it's the biggest fine they have given out yet. 

 

Source (in Norwegian):

https://www.nrk.no/norge/konkurransetilsynet-gir-telenor-788-mill.-i-bot-1.14093350

https://www.digi.no/artikler/telenor-risikerer-gigantgebyr-for-misbruk-av-dominerende-stilling/440480

 

[givingtnt]

oof

[VikingGaming]

Just to put things into perspective; Telenor made just over 50 billion NOK (or 6,157,750,000.00 USD) in 2017.

[Mihle]

4 minutes ago, VikingGaming said:

Just to put things into perspective; Telenor made just over 50 billion NOK (or 6,157,750,000.00 USD) in 2017.

Worth noting that is Operating Income and is worldwide, not just in Norway.

[VikingGaming]

That would be correct. But it gives a good idea what the company's worth is. Their income was listed at 800 000 000 NOK (98,568,000.00 USD) the same year (though I am not sure if that applies to the Norwegian part only, or if that includes the international aspect).

[kokakolia]

Hmmmm...that actually happened!? This gives me hope for Canada. The ISPs over there are ripping everybody off but Canadians are too polite to complain.

[GoldenLag]

Well...... At least there is some competition in the way the telecom companies operate in Norway. There are basicly two nets operated by two large state owned companies which then lends out their nets to smaller telecom companies who dont own a piece of cable of their own (at a reasonable price i believe is set by the state)

 

Im not shure how a third com network is going to change much.