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Telco authority against loyalty contracts

Offers and contracts are not supposed to make it impossible or too expensive for customers to accept any more favorable offers later, says the draft version of a decree by the.

In the offers and contracts of telecom companies allowances are not supposed to aim at making it impossible or too expensive for customers to accept any other, more favorable offers later, says the draft version of a decree by the National Telecommunication Authority (NHH) on „the retail markets of fixed-line network accession”.

The decree does not mean to ban definite-time preferences as long as they do not restrict the freedom of choice, as loyalty contracts do. The decree qualifies telco companies Emitel Zrt, Hungarotel Zrt, Invitel Zrt, Hungarian Telekom Nyrt and Monortel Zrt as JPE companies, i.e. companies of significant market power, and stipulates that JPE companies mustn’t raise their prices of one-time connection and monthly subscription at a higher rate than that of the inflation in the given year.

After posting the draft version in telecom gazette Hírközlési Értesítő, those concerned have 20 days to form and express their opinions, then its final version will be sent to the European Council and if approved it will be officially announced. (Gazdasági Rádió)