In this report, WIK-Consult has deduced and determined that the long-run incremental costs of peering with Init7 (and other ISPs) on Swisscom's network are zero. There are no costs on Swisscom's network beyond the costs at the interconnection interface that can be attributed to peering. The costs of peering for the peering partners are limited to the provision, collocation and ports at the peering interface. These costs are (approximately) the same on both sides and are directly attributable to the peering partners. They are therefore borne by both sides in accordance with market practice.
The data streams exchanged via peering are initiated and requested by end users, in particular Swisscom end users. The relevant costs are therefore allocated to these end customers and their demand in accordance with the principle of causality and are covered by the fees for their Internet connection. This applies regardless of whether the peering data flows between the two networks are symmetrical or asymmetrical.
Swisscom was only able to enforce paid peering because of its dominant market position. Transit does not represent a relevant product alternative to peering for Init7, as this would have led to a deterioration in quality, which in turn would have resulted in customer losses. Swisscom's measures in the form of capacity restrictions and other quality impairments at the peering interface have damaged Init7's competitive position.
In its decision of December 2024, ComCom obliged Swisscom to provide zero-settlement peering with Init7 at a cost-oriented price, thereby following the reasoning of the WIK-Consult report. Furthermore, Swisscom is obliged to cooperate on upgrades to the interconnection capacity as soon as 50% of the nominal capacity is utilised.
