Samara OFAS fined “Rostelecom” PJSC over 1 million RUB

The company was fined 1,007,000 RUB for violating the Law “On Protection of Competition”

Samara OFAS established that the company unreasonably restricted traffic transfer from networks of “AIST” CJSC to the local telephony network of “Rostelecom” PJSC in December 2014 - June 2016.  Such actions restricted competition on the market of communications services within the boundaries of “Samara” numbering area and infringed legitimate interests of “AIST” JSC, “Megaphone” PJSC, “SMARTS-Samara” JSC, “MTT” OJSC, “MTS” OJSC, as well as infringed or could have infringed legitimate interest of subscribers at large of these operators.

Earlier “AIST” CJSC and “VolgaTelecom” OJSC (and “VolgaTelecom” OJSC merged with “Rostelecom” OJSC in June 2006) signed a contract for connecting telecommunications networks. Under the contract “VolgaTelecom” OJSC was obligated to render connection and traffic transfer services to “AIST” CJSC, and “AIST” CJSC undertook an obligation to pay for them.

In its letter of 2014, “Rostelecom” OJSC informed “AIST” CJSC that from 10 December of 2014 the Samara branch of “Rostelecom” OJSC did not guarantee transfer of traffic not provided for by the contract terms and conditions, namely: not meeting the technical parameters of connection points.

In February “AIST” JSC submitted copies of their subscribers’ complaints that they were unable to make phone calls to the subscribers of “Rostelecom” OJSC in Tolyatti and Samara. The company also submitted copies of coplaints of communications providers - “MTT” OJSC, “MTS” OJSC, “Megaphone” OJSC, “SMARTSa” OJSC, that were connected to the network of “AIST” CJSC, on the absence of possibility of traffic transfer via a node of “AIST” CJSC to the network of “Rostelecom” OJSC.

A press-release published by OFAS points out that under the Rules for connecting telecommunications networks and their interaction, to ensure non-discriminatory access to the communications market an operator that has a significant position in a public network, in similar circumstances must establish equal conditions for telecommunications network connection and traffic transfer for providers rendering similar services. As well as provide information and render connection services and traffic transfer services to those providers under the same conditions and of the same quality that for their structural units and (or) affiliated persons.

Clause 4 Part 1 Article 10 of the Federal Law “On Protection of Competition” prohibits actions (omissions) of an economic entity with the dominant position that lead or can lead to preventing, restricting, eliminating competition and (or) infringing the interests of other persons (economic entities) in the filed of business or consumers at large.

Investigating the case, OFAS established that “Rostelecom” PJSC restricted traffic transfer from the communications network of “AIST” JSC to the local telephony network of “Rostelecom” PJSC.

As a result, Samara OFAS found that “Rostelecom” PJSC committed an administrative violation, liability for which is specified in 2 Article 14.31 of the Code of the Russian Federation on Administrative Violations and imposed an administrative fine upon the company – 1,007,253 RUB.