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[mcarvalho]

Sonaecom complains to EC about Portugal Telecom

08/06/2005 18:59

LISBON, June 8 (Reuters) - Portuguese telephone and Internet company Sonaecom has complained to Brussels about Portugal Telecom's (PT) dominant market position and alleged state aid, Sonaecom Chief Executive Paulo Azevedo said on Wednesday.

One complaint filed with the European Commission calls for the separation of PT's fibre-optic cable and its fixed-line copper wire network, Azevedo told a news conference.

"What I'm seeking with this complaint is the splitting-off of cable to finish PT's monopoly and for Portugal to be a normal European country," he said.

A second complaint is over the government's sale of the fixed-line network to PT in 2003 for 365 million euros ($450 million) as part of its efforts to close a budget deficit.

Sonaecom contends the sale price was far below the system's market value and the state should be reimbursed for the loss.

Sonaecom also plans to make two other complaints to the European Commission, Azevedo said, declining to give details.

PT, a former state monopoly, said it had never been the target of a ruling nationally or by the European Commission over its dominant market position.

"PT has always provided benefits to Portuguese consumers, in line with the best European practices," it said in a statement.

A spokesman for the Public Works Ministry was not available.

PT's cable TV unit, TV Cabo, leads the market and PT controlled about 85 percent of the broadband market at the end of 2004.

In mobile phone services, Sonaecom's Optimus unit trails PT's market-leading TMN and the local Vodafone subsidiary.

In Brussels Martin Selmayr, spokesman for the Information Society and Media directorate, said Sonaecom's complaint had not been received.

The European Commission sent a letter to Portugal in spring 2005 with notice of possible infringment of the European Union's universal services telecommunications directive, he said.