| Date: | May 16, 2006 |
| Reference: | MLT 2006 MCA 1 EN (ICTDEC) |
| Database: | MCA Inter-operator Dispute Decisions (Malta) |
| ICT Decision Making Body: | Malta Communications Authority (Malta) |
| Theme(s): | Competition Policy |
| Language(s): | English |
| Other Formats: |
Summary
Facts
Vanilla Telecoms Ltd (Vanilla) alleged that Datastream Ltd (Datastream) acted in violation of its legal obligations by adopting discriminatory pricing and lack of pricing transparency with respect to the provision of international bandwidth. Vanilla claimed that the bandwidth price Datastream was charging Vanilla was higher than the price Datastream charged to retail customers. Vanilla also claimed that prices Datastream was charging to a consortium of eight ISPs that had collectively purchased bandwidth were not being made available to Vanilla. A dispute was lodged with the MCA through various communications commencing on 15 Dec 2005.
Decision
1. That Datastream shall provide international bandwidth to other undertakings at the same price and subject to the same conditions that international bandwidth is provided to equivalent undertakings including its retail arm.
2. That Datastream shall within thirty days publish a price list for international bandwidth forthwith including the applicable volume discounts.
3. That Datastream shall make available equivalent volume discounts to equivalent undertakings including its retail arm and shall include in its published price list any available volume discounts that may be available.
Reasoning
1. Pursuant to the Internet and Other Data Networks (Service Providers) Regulations, the provision of wholesale international bandwidth shall be transparent and nondiscriminatory. The scope of this obligation covers the internal processes of an undertaking and requires that third party access seekers are treated no less favorably than the internal divisions of the said undertaking.
2. The same regulations also provide that tariffs for access and interconnection shall be transparent, requiring undertakings to make public specified information relating to access and interconnection.
3. The MCA noted that and price control obligations did not prohibit volume discounts, provided that such discounts were not anti-competitive and that equivalent volume discounts were offered to equivalent undertakings.
Malta Communications Authority (MCA)
Decision following the dispute lodged by Vanilla Telecoms Ltd against Datastream Ltd alleging discrimination and lack of transparency in international bandwidth pricing
16 May 2006
Facts and Procedural Posture
Vanilla Telecoms Ltd (Vanilla) alleged that Datastream Ltd (Datastream) acted in violation of its legal obligations by adopting discriminatory pricing and lack of pricing transparency with respect to the provision of international bandwidth. Vanilla claimed that the bandwidth price Datastream was charging Vanilla was higher than the price Datastream charged to retail customers. Vanilla also claimed that prices Datastream was charging to a consortium of eight ISPs that had collectively purchased bandwidth were not being made available to Vanilla. A dispute was lodged with the MCA through various communications commencing on 15 Dec 2005.
Holding
1. That Datastream shall provide international bandwidth to other undertakings at the same price and subject to the same conditions that international bandwidth is provided to equivalent undertakings including its retail arm.
2. That Datastream shall within thirty days publish a price list for international bandwidth forthwith including the applicable volume discounts.
3. That Datastream shall make available equivalent volume discounts to equivalent undertakings including its retail arm and shall include in its published price list any available volume discounts that may be available.
Reasoning
1. Pursuant to the Internet and Other Data Networks (Service Providers) Regulations, the provision of wholesale international bandwidth shall be transparent and nondiscriminatory. The scope of this obligation covers the internal processes of an undertaking and requires that third party access seekers are treated no less favorably than the internal divisions of the said undertaking.
2. The same regulations also provide that tariffs for access and interconnection shall be transparent, requiring undertakings to make public specified information relating to access and interconnection.
3. The MCA noted that and price control obligations did not prohibit volume discounts, provided that such discounts were not anti-competitive and that equivalent volume discounts were offered to equivalent undertakings.
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