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Polish regulator proposes functional separaton for TP

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16-12-2008 11:31am

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bealtine

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Polish regulator proposes functional separaton for TP Tuesday 16 December 2008 | 09:05 AM CET

Polish telecommunications regulator UKE is planning to divide incumbent operator Telekomunikacja Polska (TP) into retail and wholesale units, which TP estimates could cost it USD 250 million. If completed, the split would give the regulator power over the wholesale arm to give TP and rivals equal access to the former monopolist's network. Last month, a report commissioned by UKE said the functional separation was justified in order to eliminate the operator's anti-competitive market position. The head of UKE Anna Strezynska said the split should probably take place in 2010, provided she receives the support and approval from the European Commission, Reuters reports. Strezynska added TP may delay these proceedings opening lawsuits against the regulator. Maciej Rogalski, TP director responsible for relations with UKE, underlined that the UKE decision is not final and is still up for negotiation. TP will prepare a package of measures aimed at ensuring equal access for rival operators, he said, according to a report by the Warsaw Business Journal. Rogalski estimates that while the costs of the division will exceed PLN 750 million, the equal access measures could reduce these costs by 60-80 percent.

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