First Cuts In Romania Mobile Termination Rates Set For May 1

The initial rate cuts target three of the five distinct national markets for voice call termination, corresponding to the mobile networks of operators Cosmote Romania, Telemobil and RCS&RDS, ANCOM said in a statement.

ANCOM set the mobile termination rates (wholesale charges operators pay each other for connecting calls on their networks) at EUR0.064 per minute in case of Cosmote Romania and Telemobil, and at EUR0.0721 per minute in case of RCS&RDS.

Currently, Cosmote Romania charges interconnection rates of EUR0.082 per minute, while Telemobil and RCS&RDS charge EUR0.0801 per minute and EUR0.0743 per minute, respectively.

Starting with January 1, 2010, Cosmote Romania and Telemobil are to charge EUR0.0567 per minute, while RCS&RDS will charge EUR0.064 per minute.

Orange Romania and Vodafone Romania, the two largest mobile telephony operators on the local market, charge EUR0.0503 per minute each.

Following the introduction of new mobile termination rates, “detailed tariffs for mobile telephony services in euros will continue on a downward path, driven by competition pressure,” ANCOM’s president Catalin Marinescu told Mediafax reporters.

“Unfortunately, the exchange rate has a strong impact on mobile telephony bills, which have been growing lately on a weaker leu against the euro,” he added.

Similar measures in EU states led to an average decrease of 15% of mobile telephony tariffs over the past five years, Marinescu said.

Late January, the Romanian telecom regulator notified the European Commission of its proposal to regulate interconnection or mobile termination rates in line with the forthcoming Commission Recommendation.

The telecom regulator proposed a maximum average interconnection rate of EUR0.0503 per minute in case of Vodafone and Orange operators.

For the three other operators, the regulator proposed cutting the rates gradually until July 1, 2010, when Cosmote and Telemobil are to meet the EUR0.0503 per minute and RCS&RDS will apply a tariff of EUR0.0567 per minute.

The Commission saluted ANCOM’s decision, which will lead to an approximate 30% cut in the existing interconnection tariffs, while including several observations on the differentiated tariffs the regulator proposed for the five largest operators on the local market.

The Commission said that asymmetric mobile termination rates can only be justified by objective cost differences for a short period and invited the Romanian telecom regulator to apply symmetric termination rates.

Romania’s largest mobile telephony operator is Orange, with 10.35 million users registered end December 2008

Vodafone Romania comes second with 9.65 million users, followed by Cosmote Romania – 5.2 million users reported end September 2008.
 

If you liked this story, please follow MEDIAFAX.RO on FACEBOOK »

The content of mediafax.ro is for your information only. Republishing or using this content is forbidden without express consent of MEDIAFAX. For this consent, please ask for it by mail at vanzari@mediafax.ro.