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The Competition Authority authorizes Míla ehf. and Gagnaveita Reykjavíkur ehf. to have specific co-operation on the laying of fiber optic cables

4/17/2018

By decision no. 11/2018, the Competition Authority has authorized Míla hf. (Míla) and Gagnaveita Reykjavíkur ehf. (GR) to co-operate on the laying of fiber optic cables. This is a limited project in implementation and time that involves that each firm manages the installation of two fiber optic local loops in certain residential areas in the capital area of Iceland and sell other the other firm one of the fiber optic local loop in question.


It is the aim of the above mentioned partnership to increase the efficiency and optimization of fiber optic installation, as well as to minimize the disturbance and disturbance associated with such construction in the streets and in municipal and local areas. It is expected that the cooperation will have a positive effect on competition and increase consumer options by establishing two independent fiber-optic networks in the areas where a contract is reached. The cooperation will be limited to utilizing the same construction in order to provide two fiber-optic networks that become technically separate and independent, thus creating a basis for competition for the relevant customers.

The partnership is subject to conditions that, inter alia, aim for the fiber-optic network covered by the collaboration to be technically separate and independent and the basis for competition for the relevant customers. The conditions are also intended to ensure that the cooperation is limited to this and does not involve any consultation on other aspects, such as price or service to customers. The Monitoring Committee for the Access of Telecommunications Companies, according to decision no. 6/2015, is responsible for monitoring the cooperation on the basis of this exemption.

The above authorization is based on Article 15 in the Competition Act no. 44/2005 which authorizes the Competition Authority to grant exemption from the prohibition of Article 10 in the Competition Act regarding unlawful collusion.
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