Cistron may not be excluded yet: Decision concerning fixed telephone services

OPTA has decided that KPN may not yet cease offering the services which it provides to the company, Cistron. In the interests of the latter’s customers KPN must observe a reasonable term of six weeks.

KPN is required to continue to provide services to Cistron until 21 September 2001. This must be done in such a way that Cistron is able to offer its customers a fixed public voice telephone service with comprehensive functionality. KPN is entitled to require a reasonable financial guarantee from Cistron in this respect.

In the event that Cistron is unable to provide such security, KPN will be entitled to limit the services it provides to that company until 21 September. In this case Cistron will only be able to offer a pared-down form of fixed public voice telephone services (geographical numbers and the 112 emergency number).

OPTA’s consent required

KPN had intended to limit the services it provides to Cistron as of noon on 14 August 2001, and to terminate them entirely on 21 September 2001. OPTA drew KPN’s attention to its duty under the terms of Section 28 of the ONP Leased Lines and Telephony Decree [Besluit ONP huurlijnen en telefonie] (BOHT). This section stipulates that the provider of a fixed public telephone service is only entitled to suspend, terminate, substantially modify or limit a service which it provides, with OPTA’s prior written consent. In response, KPN filed an application on 13 August.

Competition

Fixed public voice telephone services represent a basic facility which every household in the Netherlands is entitled to have. In its current form community life renders the availability of this service indispensable. Consequently, it is vitally important to the users of the service, that it is available to them without disruption. OPTA deems it undesirable that users who fulfil their duty to effect payment are deprived of fixed public voice telephone services. In addition, users should have a realistic opportunity to choose the provider from whom they wish to procure fixed public voice telephone services.

It is important that sustainable competition be maintained in the market for this purpose. This is not yet the case in the market for fixed public voice telephone services. If sustainable competition is to be achieved in this market, it is vitally important, for instance, that new providers entering it are able to rely on customer loyalty. At any tariff, there can be no question of this occurring, if the customers of any provider who is required to change and/or terminate his fixed public voice telephone services are not given a reasonable period of time within which to choose another provider. In this case one will no longer be readily inclined to procure fixed public telephone services from any provider other than KPN.