OREANDA-NEWS. February 03, 2009. The Federal Antimonopoly Service (FAS Russia) reviewed the market for the services of providing Internet access. The main focus was on competition environment on the market in the towns with population less than 1 million people, reported the press-centre of FAS Russia.

The study revealed considerable problems with development of one of the most important goods market in the modern economy. Despite significant growth of the number of users of the services of Internet access and the number of Internet-providers, the market, remains highly concentrated or effectively monopolistic, except in the largest cities. Prices for these services vary greatly in big cities and other towns and settlements, which only aggravates "digital inequality" among the regions.

The study proved that the above problems are caused, in particular, by high prices fixed by the local operators of telephone communication (typically, "Svyazinvest" OJSC) - the owners of communication lines, for the services of shared use of subscriber lines. The other cause is dramatic price difference on the market for supply of the inter-operator traffic: the price difference on the wholesale traffic market in the regional and district centers is up to 10 times.

According to Anatoly Golomolzin, Deputy Head of FAS Russia, after the problem was discussed by the Presidium of the FAS Russia's Collegium, the Antimonopoly Service has decided to undertake various measures in order to stop restriction of competition and infringements of the users' rights, including "digital inequality among the regions".

For instance, FAS Russia has decided to initiate proceedings against "Sibir'Telecom" OJSC and "Severo-Zapadny Telecom" OJSC for antimonopoly violations in terms of fixing monopolistically high prices for the use of subscriber lines (with the aim to provide Internet access). Upon processing the cases, FAS Russia will inspect other market entities, which provide the main access to subscriber lines, and undertake the necessary measures aimed at preventing restriction of competition.

Currently FAS Russia is inspecting the wholesale traffic supply market to identify the practices of fixing monopolistically high prices and creating unequal conditions for economic activity.

It is expected that the problem will be discussed by the FAS Russia's Expert Council on Communication in the near future.