Am 24.12.2024 um 14:00 schrieb Arnold Nipper arnold@nipper.de:

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On 23.12.2024 12:55, Fredy Künzler via swinog wrote:

Big victory for Init7: Swisscom is obliged to operate interconnections on a zero-settlement basis! 🎉 🥂 🍾

congratulations! This has been a long fight! And ComCom's decision is encouraging for the interconnection industry. Q1: does that mean that Swisscom has to peer with any network worldwide? Or only with Swiss? And which routes?

The order applies only to Init7, however it could prejudice similar cases.

Most relevant is that Swisscom is considered dominant in the relevant market (access to their end customers). There is no other option foe content heavy networks to send traffic via paid peering (any ratio beyond 2:1 is expensive) or buying transit from DTAG, and it’s known that DTAG is paying kickback to Swisscom and others because they can enforce overpriced fees from content. That pattern is considered illegal, SC and DTAG formed a cartel according to Swiss law. I hope that ComCo (Wettbewerbskommission) will sanction it any day soon.

Since swiss operators are requested to register themselves at OFCOM, they become FDA (Fernmeldedienstanbieterin) and the FMG Fernmeldegesetz (Swiss telecom law) applies. Here are the rules: A Swiss FDA can start negotiating with Swisscom about zero settlement peering. If no consensus is reached within three months, the FDA can request an order at ComCom with reference to our case and documenting all the steps taken to achieve an agreement (emails, protocols etc.).

ComCom is supposed to rule within 7 months. The decision of ComCom can be appealed to the Federal A Court by either party. It’s not risk free and I suggest to get a lawyer with clue to avoid formal mistakes, in case there is no consensus possible with Swisscom.

It could have also a financial impact, as we lost the first attempt, we were asked to pay ~CHF 126’000 to cover the cost of the procedure. Since Swisscom has lost now, they have to pay ~CHF 170’000.

I suggest to read page 4 to 11 of the «Verfügung» https://www.init7.net/de/vf-2024-12-19-001-entscheid-comcom-verf-init7-swiss... (German) to get a clue how painful it could be.

I assume that Swisscom is going to rework their peering policy and change it to a compliant version. I suggest to wait until the new version is out.

Q2: as a corollary: shouldn't all networks in a country peer with each other their national routes on a zero-settlement basis?

Thats a hypothetical question and is beyond the ruling of ComCom, I guess.

-- Fredy Künzler

Init7 (Switzerland) Ltd. Technoparkstrasse 5 CH-8406 Winterthur https://www.init7.net/