Separating the troublemakers

Despite relatively robust competition between internet providers in big cities, Telekomunikacja Polska (TP), with its 42-percent share of the broadband-internet market, is the biggest provider of internet services in Poland.

The strength of its position is mostly due to its monopolistic ubiquity. Whereas wireless internet has a limited range, for example, TP's Neostrada internet service is available throughout the country, provided the potential subscriber has a telephone jack.

In theory, that is. In practice, the use of Neostrada's internet service is contingent on having not only a telephone jack, but also a subscription to TP's telephone service. Of course, there is a requisite monthly subscription fee for the telephone line.

For a long time these requirements have been criticized by the Office of Electronic Communications (UKE), which has demanded that TP separate its internet and telephone services. Despite financial penalties imposed by the watchdog, TP has continually appealed its decisions and paid almost none of the fines.

Last week Marcin Witucki, the president of TP, announced that from February 15, 2007, the firm's Neostrada and telephony services would be divided. "I would like to emphasize that according to our strategy, TP was planning to initiate this service and it is not interested in any way in delaying its implementation," wrote Witucki in a letter to the director of UKE. However, TP also intends to charge a fee for the maintenance of the internet connection. This new fee is to be just zł.4 cheaper than the obligatory subscription fee for the telephone line.