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TP to invest in broadband following agreement with government

Polish telco Telekomunikacja Polska (TP) has committed to investing in half a million new broadband lines and the upgrading of a further 700,000 existing lines between now and 2012, following the signing of a memorandum of understanding between the company and Polish communications regulator the UKE.

Under the terms of the MoU, TP will grant access to alternative service providers on a “cost-plus” basis, rather the “retail-minus” basis hitherto adopted (meaning that prices will be set at a fixed margin above the cost of lines, rather than a margin less than their retail price), and wholesale rates for access will be stabilised between now and 2012. It is expected that approximately one million of the 1.2 million lines to be built or upgraded will deliver speeds of at least 6Mbps.

TP president Maciej Witucki said that the normalisation and stabilisation of the regulatory environment gave the company sufficient confidence to invest in the development of its network.