KPN must provide clarity concerning the actual costs involved in co-location: Decision in relation to broadband Internet access

In connection with a dispute between BaByXL and KPN, OPTA has ruled that the latter must provide clarity concerning the actual costs involved in installing BaByXL’s equipment in the relevant telephone exchanges. KPN must issue new invoices for all co-location facilities supplied to BabyXL in the past. When drawing up these invoices, KPN is required to act in accordance with the system devised by OPTA. The latter assumes that the tariffs which KPN has been charging for co-location are too high. OPTA anticipates that this decision will result in a reduction of co-location tariffs.

If services such as broadband (fast) Internet access are to be provided, it is usually necessary that a competitor be able to install equipment in or close to a local exchange. The provision of the facilities that are required to connect this equipment is referred to as co-location. BabyXL had brought a case against KPN before The OPTA Commission in this respect.

OPTA has ruled that KPN has four weeks within which to provide clarity concerning the value and structure of the tariffs it charges for co-location services. In addition, KPN needs to provide details of the actual costs which it incurs for every co-location facility ordered by BaByXL. Apart from this, KPN needs to provide BaByXL with a breakdown of the costs that it is still to incur for supplying the co-location facilities which BaByXL has ordered.

New invoices

Moreover, KPN has eight weeks within which to issue new invoices to BaByXL for the work that it has performed. What this involves is a detailed invoice for each exchange in which BaByXL co-locates. Settlement will therefore have to take place. When preparing these invoices, KPN is required to act in accordance with the system and, if applicable, the tariffs, determined by OPTA. The latter was as yet unable to assess a number of tariffs. KPN still needs to supply additional information in this respect. OPTA assumes that the tariffs which KPN has been charging for co-location are too high.

OPTA (Independent Post and Telecommunications Authority) has been in existence since 1997 and has been entrusted by the Dutch government with the duty to regulate the postal and telecommunications markets in the Netherlands. In addition, OPTA has a duty to ensure that there is adequate competition in these markets. It has a number of duties and powers for this purpose, which are set out in the relevant legislation. Decisions are taken by OPTA’s independent Commission and are binding on the various market parties.