Baltcom GSM accused of unfair competition

RIGA (BNS) - The Latvian Competition Council will look into the alleged violation of the competition law by the mobile phone operator Baltcom GSM.

Latvia's other mobile phone operator Latvijas Mobilais Telefons asked the council to investigate whether Baltcoms' advertising booklet violates the competition law.

LMT and Baltcom GSM are the only two mobile phone operators in Latvia. LMT had been in operation for some six years and has 125,3000 subscribers, while Baltcom GSM opened two years ago and has 42,200 subscribers. At the end of last year Baltcom GSM distributed advertising booklets entitled "Make sure you don't pay too much" and compared its rates to LMT's rates.

LMT Public Relations Manager Davids Dane claims that the comparison of the rates in the booklets had been presented "in an incomplete and distorted manner." The LMT rates given in the booklet are not exactly true.

Agnese Ekmane from Baltcom GSM assured that the company did not intend to offend its competitors by this advertising material. She also said that the "closest" rates of the two companies had been compared in the booklet.

The Baltcom GSM representative also said that it was not in the interest of the company to provide incorrect information as any customer can verify the facts himself. Nevertheless, the advertisement emphasized the more favorable terms offered by Baltcom GSM.

Peteris Vilks, Competition Council's chairman, said the investigation will last at least two months.