WBJ/PKPP Lewiatan press breakfast: Liberalization on hold
The president of the Office of Telecommunications and Post Regulations (URTiP), Witold Graboś, and the managing director of Tele2, Piotr Nesterowicz, sparred over the regulator's activities and the sluggish pace of the telecom market's liberalization at the gathering of industry representatives and business leaders last week. While Graboś described the telecom market as chock-full of potential and exciting opportunities, the president of the plucky fixed-line underdog placed the blame for the lack of competition in the sector squarely at the regulator's door, complaining of slow decision making and favoritism towards TP SA.
Graboś pointed to growing competition in the sector as proof that liberalization is progressing apace. "The fixed line market is increasingly competitive, especially when it comes to long-distance and international calls," he said.
But Nesterowicz, whose company is fighting to grow in a market dominated by TP SA, didn't share Graboś' positive outlook. "During the last months we have not witnessed any progress. On the contrary the dominant position of TP SA has been reinforced," he said.
Nesterowicz complained that the decision making process at URTiP was too lengthy and said that when a decision finally is made, it is neither respected by TP SA, nor enforced by the regulator. The Tele2 boss also pointed out that no local loops have been unbundled - a situation he believes is blocking the growth of broadband internet.
Piotr Muszyński, director of TP SA's service and sales division, defended his company, saying there was nothing strange or unfair about its activities.
"TP SA is working according to free-market rules on a regulated market. It's natural that TP SA holds a dominant position, considering the history of the market." He also pointed out that TP SA is one of the biggest investors in the Polish economy.
With regards to the recent tender for GSM and UMTS frequencies, Graboś expressed satisfaction that the UMTS tender was successfully settled. He called UTRiP's conditions for the tender "rational," but Nesterowicz said the office set unreasonable criteria - scaring off all but two possible investors. When asked why Tele2 didn't apply for the UMTS or GSM license, Nesterowicz said: "We decided we have better alternatives."
The WBJ's partners are Hotel Le Regina and Skrivanek Translation Services.
Graboś pointed to growing competition in the sector as proof that liberalization is progressing apace. "The fixed line market is increasingly competitive, especially when it comes to long-distance and international calls," he said.
But Nesterowicz, whose company is fighting to grow in a market dominated by TP SA, didn't share Graboś' positive outlook. "During the last months we have not witnessed any progress. On the contrary the dominant position of TP SA has been reinforced," he said.
Nesterowicz complained that the decision making process at URTiP was too lengthy and said that when a decision finally is made, it is neither respected by TP SA, nor enforced by the regulator. The Tele2 boss also pointed out that no local loops have been unbundled - a situation he believes is blocking the growth of broadband internet.
Piotr Muszyński, director of TP SA's service and sales division, defended his company, saying there was nothing strange or unfair about its activities.
"TP SA is working according to free-market rules on a regulated market. It's natural that TP SA holds a dominant position, considering the history of the market." He also pointed out that TP SA is one of the biggest investors in the Polish economy.
With regards to the recent tender for GSM and UMTS frequencies, Graboś expressed satisfaction that the UMTS tender was successfully settled. He called UTRiP's conditions for the tender "rational," but Nesterowicz said the office set unreasonable criteria - scaring off all but two possible investors. When asked why Tele2 didn't apply for the UMTS or GSM license, Nesterowicz said: "We decided we have better alternatives."
The WBJ's partners are Hotel Le Regina and Skrivanek Translation Services.
