Danish internet providers are facing a massive price increase of 3,000 percent from TDC Net for renting space in their exchanges, sparking concerns about fair competition and potential cost increases for consumers. Global Connect, Telenor, and TDC Net have confirmed the significant price hike, which took effect on June 1st.

The increase stems from TDC Net’s decision to adjust co-location rental prices to align with market conditions and actual costs, after decades of offering them at historically low rates. TDC Net cites the costly shutdown of the copper network and the need for extensive clean-up in technical facilities as justification for the price adjustment.

Global Connect, a major Nordic internet provider, estimates the price increase will cost them millions of dollars each month. Uffe Tomasson, Global Connect’s technical director, criticizes TDC Net for the sudden and substantial increase, arguing it violates the commitment to fair competition. He also fears that these increased costs will ultimately be passed on to consumers.

Telecom analyst John Strand believes the situation warrants investigation by authorities as a potential competition case. He argues that co-location points are a monopoly business, leaving companies that rely on TDC’s network with no alternatives.

The Danish Business Authority has met with Global Connect and advised them on their options. The authority is awaiting Global Connect’s next steps following their guidance.

TDC Net is currently in the process of shutting down its nationwide fixed network by 2030. They argue that co-location has been used to build competing infrastructures at below-market prices, which is no longer sustainable. They maintain that the price adjustment was made with the required notice and is necessary for the fair and sustainable use of their infrastructure.