UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 6-K
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REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13A-16 or 15D-16 of
the Securities Exchange Act of 1934
JULY 5, 2006
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TDC A/S
(Exact name of registrant as specified in its charter)
NOERREGADE 21, 0900 COPENHAGEN C, DK-DENMARK
(Address of principal executive offices)
001-12998
(Commission File Number)
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Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F:
Form 20-F [X] Form 40-F [ ]
Indicate by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [ ] No [X]
TDC SWITZERLAND - FEDERAL COURT RULING
TDC SWITZERLAND - FEDERAL COURT RULING ON LANDLINE INTERCONNECT RATES
Copenhagen - On May 22, 2006 TDC Switzerland received a ruling from the Swiss
Federal Court in the interconnection proceedings that have been ongoing since
April 2000. Since January 1, 2000 Swisscom has been required to calculate its
prices for interconnection services based on the Long Run Incremental Cost
(LRIC) principle. However, the prices charged by Swisscom have been disputed by
TDC Switzerland.
For the period 2000-2003 the Court has finally approved in principle the prices
previously set by the Federal Communications commission (ComCom) in June 2005.
The now approved prices of ComCom are substantially lower than the prices
charged by Swisscom. Only in a minor point, the Court has ordered ComCom to
recalculate the prices of Swisscom. This recalculation is expected to be
finalized before the end of 2006. The prices for 2004-2006 will be defined in
accordance with the principles for the final prices for 2000-2003.
TDC has now finalized its assessment of the ruling and has applied certain
assumptions regarding the final outcome of the proceedings regarding the
recalculation of the prices, cf above, and the relevant volumes of
interconnection traffic. In accordance with IFRS, TDC has estimated the income
that is assessed to be virtually certain, and accordingly TDC estimates that the
financial impact for TDC Switzerland for the years 2000-2005 will result in an
income before tax of CHF 186m (DKK 890m). This income will be reported as a
special item in Q2 2006.
The estimated impact for 2006 will amount to CHF 12m (DKK 57m) before tax. This
income will be reported as a reduction of transmission costs. The outlook for
2006 EBITDA from TDC Switzerland remains unchanged.
Due to the above-mentioned outstanding issues regarding the prices for 2000-2003
and 2004-2006 as well as the relevant volumes, the timing of the impact on the
cash flow for TDC cannot be precisely determined. It is expected that the
majority of the income will result in cash receipts during 2006-2007.
For further information please contact TDC Investor Relations on +45 3343 7680.
TDC A/S
Noerregade 21
DK- 0900 Copenhagen C
Denmark
www.tdc.com
SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
TDC A/S
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(Registrant)
JULY 5, 2006 /s/ FLEMMING JACOBSEN
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(Date) Flemming Jacobsen
Vice President Treasury