FAS obtained from mobile operators the abolition of fees for Internet distribution

Three operators from the “Big Four” – “Megaphone“, “Beeline” and Tele2 – will soon cancel the fee for distributing the Internet from mobile phones of subscribers, the FAS press service reported. “In September 2023, the department issued warnings to the Big Four cellular operators about the abolition of fees for distributing Internet traffic from mobile devices. As a result, three out of four operators reported that they were ready to implement it,” the FAS reported on October 30.

In September, the FAS stated that it had established “signs of violation of antimonopoly legislation” in the introduction of fees for the distribution of the Internet by the Big Four operators – in addition to Megafon, Beeline and Tele2, signs of violations were also found in MTS. In the actions of all companies, FAS identified signs of violation of the prohibition on abuse of a dominant position in the form of imposing unfavorable contract terms on the counterparty.

After that MTS “notified the Federal Antimonopoly Service of Russia that its actions to collect fees for the distribution of Internet traffic did not infringe upon the interests of subscribers,” the service said in a statement.

Vedomosti sent a request to the FAS about possible further actions of the regulator in connection with MTS’s statement. The operator’s press service ignored Vedomosti’s request.

Representatives of Megafon, Beeline and Tele2 confirmed information about plans to cancel fees for mobile Internet distribution.

“On all tariff plans with limited Internet packages, fees for tethering (distributing Internet from a mobile device – Vedomosti) will be canceled from December 1, 2023,” a Beeline representative told Vedomosti. Regarding the fee for tariffs with unlimited mobile Internet, the operator promised to provide information by December 1, 2023. “We are currently assessing the time frame for the technical implementation of solutions related to ensuring optimal load on network resources,” added the Beeline representative.

A Megafon representative said that paid Internet distribution appeared on the operator’s new tariffs in April 2023, but in the total array of all Megafon tariff plans their number is small. “We will not introduce a fee for the distribution of Internet at the tariffs in which it was originally connected without additional payment. In the new tariff lines, we will also take into account the requirements of the Federal Antimonopoly Service and will retain such offers for customers, within the framework of which the Internet distribution service will not be charged separately,” said a Megafon representative.

“Tele2 submitted information to the FAS about the implementation of warnings. From November 22, Internet distribution from mobile devices will be free for new subscriber connections, and from December 19 – for all existing customers,” noted a Tele2 representative.

Possible liability MTSIf the FAS finds the operator guilty of imposing unfavorable conditions on subscribers, it is really small: for the company the fine could be 300,000-500,000 rubles, notes Sergei Uchitel, partner of the Pen & Paper Bar Association. But in this case, it is also possible to attract MTS for other facts of violation of competition law, where more serious sanctions are provided, the lawyer added.

According to an interlocutor at one of the large operators, MTS unlike all other companies, it has a large number of tariffs with paid Internet distribution, and the loss of this option for the operator is more significant than possible FAS fines and reputational risks.

Payment for Internet distribution is not a fundamental issue from the point of view of the economics of operators, argues industry expert, analyst of the Telegram channel @abloud62 Alexey Boyko. However, due to the fact that operators are under a heavy financial burden with problems with the purchase of foreign equipment, the authorities’ requirements for storing user traffic in accordance with the “Yarovaya Law” and the obligation to cover areas along highways with networks, companies are striving to use any opportunities to increase revenues. he says.

“Mobile operators drove themselves into bondage when they competed with their “biceps” – unlimited tariff plans. In the current situation with the departure of foreign equipment manufacturers and the lack of domestic analogues, as well as the growing load on operator networks, they were forced to look for a compromise,” agrees Denis Kuskov, CEO of the analytical agency Telecom Daily.

Operators will still look for an opportunity to “cut off” traffic distribution, the expert believes. “Given that it is visible to them at the software level, they can minimize the speed characteristics, which will make the distribution technologically unprofitable,” notes Kuskov.

However, it is not clear why the antimonopoly agency interferes with the work of commercial operators in a highly competitive market, Boyko notes. “Do not operators have the right to charge money for the services they provide, including by introducing fees for previously free services?” he noted. FAS should choose the position of an arbitrator, not a prosecutor, Kuskov agrees.

If we assume that the introduction of fees for Internet distribution was an attempt by operators to limit traffic growth in order to maintain the quality of communication in the absence of the possibility of increasing technical capacity, then the companies, in fact, acted in the interests of all subscribers, Boyko argues. “In this case, the actions of the FAS may lead to a decrease in the quality of services,” the expert warned.