OREANDA-NEWS. December 01, 2009. The 9th Arbitration Appeal Court confirmed validity of the decision and determination issued by the Federal Antimonopoly Service (FAS Russia) regarding "Bashinformsvyaz" OJSC, reported the press-centre of FAS Russia.

Earlier the Moscow Arbitration Court allowed the claim of "Bashinformsvyaz" OJSC.

On 19th March 2009, the Federal Antimonopoly Service (FAS Russia) found that "Bashinformsvyaz" OJSC abused its market dominance (Part 1 Article 10 of the Federal Law "On Protection of Competition").

The case was initiated upon a petition of "MTS" OJSC that provides mobile telephone services in the Republic of Bashkortostan.

"Bashinformsvyaz" OJSC dominates the market for connecting telecommunication networks and traffic transfer at the local and intra-zonal levels in Ufa and the Republic of Bashkortostan.

Investigating the case, FAS Russia concluded that actions of "Bashinformsvyaz" OJSC for restricting and terminating transfer of local and intra-zonal traffic of "MTS" OJSC infringed the interests of an alternative provider.

For instance, "Bashinformsvyaz" OJSC unreasonably restricted, and on some directions terminated traffic transfer from the telecommunication networks of "MTS" OJSC despite the valid contracts for connecting telecommunication networks.

"Such actions prevent "MTS" OJSC from using company's own telecommunication networks and forces it to buy more expensive services for zonal call termination with "Bashinformsvyaz" OJSC, which increases expenses of other providers for providing the services for traffic transfer, says Anatoly Golomolzin, Deputy Head of FAS Russia. - Under such conditions, "MTS" OJSC cannot set competitive prices for the services of traffic transfer for other providers, which can restrict competition on the market of connection and traffic transfer services in the Republic of Bashkortostan".

The Court of the Appeal Instance accept the argumentation of FAS Russia that dominant providers, who insist on using only that option of traffic transfer out of various possible ones, that is only to their benefit, are abusing their market dominance. Such violations prevent optimal use of built-up zonal telecommunication networks by other operators, and impose unreasonable restrictions in terms of organizing the services for connection and traffic transfer.