OREANDA-NEWS. June 02, 2011. The Federal Antimonopoly Service (FAS Russia) found that “Rostelecom” OJSC (“Severo-Zapad” Macro-Regional Branch of “Rostelecom” OJSC) violated Part 1 Article 10 of the Federal Law “On Protection of Competition”, reported the press-centre of FAS Russia.

FAS Russia initiated the case against “Severo-Zapadny Telecom” OJSC upon petitions of “MTS” OJSC, “VympelCom” OJSC, “MegaPhon” OJSC and “SZKTI” OJSC. According to the petitioners, company’s actions had the signs of violating Part 1 Article 10 of the Federal Law “On Protection of Competition”: imposing disadvantageous contract conditions on connecting and interacting telecommunications networks, as well as unreasonably terminating the services for traffic transmission and unreasonably refusing to conclude contracts for connection and interaction of telecommunications networks.

Investigating the case, the FAS Russia’s Commission concluded that “Rostelecom” OJSC infringed the interests of alternative providers: “Rostelecom” OJSC unreasonably restricted and terminated traffic transmission from communications networks of “MTS” OJSC, “VympelCom” OJSC, “MegaPhon” OJSC and “SZKTI” OJSC under the valid contracts for connecting telecommunications networks, and refused to conclude contracts for connection and interaction of telecommunications networks offered by “MTS” OJSC and “VympelCom” OJSC.

According to the Commission, as a result of the actions undertaken by “Rostelecom” OJSC alternative operators were unable to use their own telecommunications networks and had to purchase a more expensive service of zonal call termination from “Rostelecom” OJSC, which increased the costs of other providers for traffic transmission. At the same time, “Rostelecom” OJSC directed to the networks of the providers, who complained to FAS Russia, the same traffic that “Rostelecom” OJSC had stopped transmitting from their networks.

Under such conditions “MTS” OJSC, “VympelCom” OJSC, “MegaPhon” OJSC and “SZKTI” OJSC were unable to set competitive prices for traffic transmission for other providers, which ultimately could have restricted competition on the market of connecting and traffic transmission in the provinces included in the North-West Federal District.

Having investigated the case, FAS Russia found that “Rostelecom” OJSC (“Severo-Zapad” Macro-Regional Branch of “Rostelecom” OJSC) violated Part 1 Article 10 of the Federal Law “On Protection of Competition” and recommended that the company should eliminate the violations.