Worlds apart: Opposing views on the state of the telecom market in Poland
Witold Graboś, President of the Office of Telecommunication and Post Regulations (URTiP)
On the Polish telecom market: "The Polish market is a market offering great chances - all its weak sides are a huge chance for business. It is becoming more competitive, but it is not competitive enough, although in the fixed-line market the progress has been clear. In the long-distance and international-calls segment the liberalization process has been especially visible."
How to boost competition: "The regulations office has already presented its offer in February concerning the unbundling of local loops, which will enhance the competition. Number portability also offers a chance for the market, but operators are strangely reluctant to accept it. The office has already postponed the decision to introduce number portability until October and there will be no further delays. The tender for 3.6-3.8 GHz frequencies offers a big chance for regional governments and local operators. This in turn will benefit the whole country and offers a chance to improve broadband internet penetration."
On the GSM/UMTS tender: "We have created rational conditions and the market has replied to them. The fact that somebody wants to invest in 3G is a positive signal."
On the GSM market: "We will be experiencing further competition, a simple competition - the aim of which is to win the other operator's client. Heyah did that successfully last year. Slowly we will be moving to quality competition based on new technology."
Wojciech Szymczak, deputy director of the market analysis department of the Office of Competition and Consumer Protection (UOKiK)
On the powers of UOKiK: "We are not a regulatory office, we issue opinions with regards to the decisions of the URTiP. We can only take action when enterprises establish cartels or when a company abuses its dominant position on the market."
On the competition on the mobile market: "There are some similarities to oligopoly in the mobile market, but last year showed that there is genuine competition. New brands have been introduced, the prices have fallen. We are very happy with the outcome of the UMTS tender - a new player on the market will mean more competition. It is good that it is the UMTS tender that was successfully settled - it will force the existing operators to invest in UMTS technology, which will boost quality."
Piotr Nesterowicz, managing director of Tele2 Poland
On competition in the fixed-line market: "There was no progress in competition last year - on the contrary, the dominant position of TP SA has been reinforced. The access to the voice-telephony market is blocked by a very high subscription rate. The regulator doesn't want to free up this market.
"Unbundling the local loops could really boost the development of broadband internet in Poland. The regulator has great influence here, but as yet none of the loops have been unbundled. Another thing that hampers competition is the decision-making process in the URTiP - it takes too long and when a decision is finally made then usually it is not implemented as it is not respected by TP SA and the regulator does not take any action to enforce such decisions. We are not progressing; without firm actions on the regulator's part, no changes will take place."
Piotr Muszyński, director of TP SA's service and sales division
On the future of fixed line telephony: "We are witnessing the outflow of customers to the mobile-telephony brands. The future of fixed-line telephony is the internet. TP SA is devoted to expanding access to internet - at the end of 2003 we had 135,000 connected, currently it is over 840,000 and by the end of the year we plan to have 1.1 million internet customers.
"The migration of customers to other technologies means that the main focus will be not on winning clients but on keeping them. Improving the quality of services will be vital to success on the market."
On accusations of monopolistic practices: "TP SA is a free-market company. The pace of the liberalization of the telephony market in Poland is similar to that process in other sectors of the economy. We are taking part in free-market mechanisms."
On the Polish telecom market: "The Polish market is a market offering great chances - all its weak sides are a huge chance for business. It is becoming more competitive, but it is not competitive enough, although in the fixed-line market the progress has been clear. In the long-distance and international-calls segment the liberalization process has been especially visible."
How to boost competition: "The regulations office has already presented its offer in February concerning the unbundling of local loops, which will enhance the competition. Number portability also offers a chance for the market, but operators are strangely reluctant to accept it. The office has already postponed the decision to introduce number portability until October and there will be no further delays. The tender for 3.6-3.8 GHz frequencies offers a big chance for regional governments and local operators. This in turn will benefit the whole country and offers a chance to improve broadband internet penetration."
On the GSM/UMTS tender: "We have created rational conditions and the market has replied to them. The fact that somebody wants to invest in 3G is a positive signal."
On the GSM market: "We will be experiencing further competition, a simple competition - the aim of which is to win the other operator's client. Heyah did that successfully last year. Slowly we will be moving to quality competition based on new technology."
Wojciech Szymczak, deputy director of the market analysis department of the Office of Competition and Consumer Protection (UOKiK)
On the powers of UOKiK: "We are not a regulatory office, we issue opinions with regards to the decisions of the URTiP. We can only take action when enterprises establish cartels or when a company abuses its dominant position on the market."
On the competition on the mobile market: "There are some similarities to oligopoly in the mobile market, but last year showed that there is genuine competition. New brands have been introduced, the prices have fallen. We are very happy with the outcome of the UMTS tender - a new player on the market will mean more competition. It is good that it is the UMTS tender that was successfully settled - it will force the existing operators to invest in UMTS technology, which will boost quality."
Piotr Nesterowicz, managing director of Tele2 Poland
On competition in the fixed-line market: "There was no progress in competition last year - on the contrary, the dominant position of TP SA has been reinforced. The access to the voice-telephony market is blocked by a very high subscription rate. The regulator doesn't want to free up this market.
"Unbundling the local loops could really boost the development of broadband internet in Poland. The regulator has great influence here, but as yet none of the loops have been unbundled. Another thing that hampers competition is the decision-making process in the URTiP - it takes too long and when a decision is finally made then usually it is not implemented as it is not respected by TP SA and the regulator does not take any action to enforce such decisions. We are not progressing; without firm actions on the regulator's part, no changes will take place."
Piotr Muszyński, director of TP SA's service and sales division
On the future of fixed line telephony: "We are witnessing the outflow of customers to the mobile-telephony brands. The future of fixed-line telephony is the internet. TP SA is devoted to expanding access to internet - at the end of 2003 we had 135,000 connected, currently it is over 840,000 and by the end of the year we plan to have 1.1 million internet customers.
"The migration of customers to other technologies means that the main focus will be not on winning clients but on keeping them. Improving the quality of services will be vital to success on the market."
On accusations of monopolistic practices: "TP SA is a free-market company. The pace of the liberalization of the telephony market in Poland is similar to that process in other sectors of the economy. We are taking part in free-market mechanisms."
