9.10.2017

In the Consultative Council of 9 October 2017, ANCOM - together with the industry - debated and adopted a set of measures on identifying, analysing and regulating the markets for the services of call termination provided at fixed locations, respectively at mobile locations, in the public telephony networks. ANCOM's decisions provide both for maintaining the obligations, including - for the time being - the regulated tariffs, imposed on operators with significant market power in previous analysis rounds, and for imposing regulations on the operators with significant market power identified in the latest market analysis round.

Termination tariffs will be recalculated after the review of the relevant European legislation, based on a cost model - developed, with specialized support, by ANCOM - filled in with updated cost information provided by operators.

The Authority carries out this review of the relevant wholesale markets on a regular basis, in accordance with the national and European legislation in force, to ensure the functioning of retail telephony markets under competitive conditions and thus protect the end-users’ interests.

Relevant wholesale markets

According to the decision, ANCOM identified 37 relevant wholesale markets for fixed call termination services on public telephone networks and five relevant wholesale markets for mobile call termination services on public telephone networks. For all these markets, the Authority maintains, or imposes, as appropriate, obligations related to the identified competition issues, such as transparency, non-discrimination, price control and cost-orientation (also maintaining the symmetry of termination rates), as well as the obligation to allow access to and use of specific network elements and of the associated facilities.

Tariffs for call termination

All the 37 fixed telephony operators identified with significant market power must apply call termination rates that cannot exceed 0.14 eurocents/minute, VAT not included, the threshold in force from 1 April 2014. The list of fixed telephone operators to which the proposed regulatory measures will apply, is available here.

Furthermore, the call termination tariff to be applied by the five mobile telephony operators with significant market power (Lycamobile S.R.L. - full mobile virtual network operator, Orange Romania S.A., RCS & RDS S.A., Telekom Romania Mobile Communications S.A. and Vodafone Romania S.A.) remains the one in force as of 1 April 2014, i.e. 0.96 eurocents/minute, VAT not included.

Thus, ANCOM currently maintains the fixed and mobile call termination tariffs, cost-oriented, based on the pure LRIC methodology, a model completed in early 2014 and based on detailed forecasts up to 2020 on the evolution of relevant parameters included, but is considering including the review of the pure LRIC model in the 2018 action plan.

Access to specific network elements and to associated facilities

Moreover, ANCOM's decisions lay down the obligation of fixed network operators, as well as of mobile network operators identified as having significant market power, to provide the IP-based interconnection service in accordance with nationally harmonized technical requirements. The measure will apply from 1 January 2019, but not earlier than 6 months from the entry into force of the decision on the adoption of harmonized technical requirements at national level. The measure is determined by the current national context, in which certain fixed and, respectively, mobile service providers, that own IP networks, encounter the refusal of other fixed or mobile telephony operators to provide IP-based interconnection services, which creates and maintains a number of competitive issues.

Notification at European level

According to the European regulatory framework, after adopting the Decision, ANCOM will notify the European Commission, the Body of Electronic Communications Regulators (BEREC) and the national regulatory authorities of the other Member States on the proposed measures. The European Commission, BEREC and other regulatory authorities will be able to send comments and observations to ANCOM within one month from the notification date.

In the Consultative Council of 9 October 2017, ANCOM - together with the industry - debated and adopted a set of measures on identifying, analysing and regulating the markets for the services of call termination provided at fixed locations, respectively at mobile locations, in the public telephony networks. ANCOM's decisions provide both for maintaining the obligations, including - for the time being - the regulated tariffs, imposed on operators with significant market power in previous analysis rounds, and for imposing regulations on the operators with significant market power identified in the latest market analysis round.

Termination tariffs will be recalculated after the review of the relevant European legislation, based on a cost model - developed, with specialized support, by ANCOM - filled in with updated cost information provided by operators.

The Authority carries out this review of the relevant wholesale markets on a regular basis, in accordance with the national and European legislation in force, to ensure the functioning of retail telephony markets under competitive conditions and thus protect the end-users’ interests.

Relevant wholesale markets

According to the decision, ANCOM identified 37 relevant wholesale markets for fixed call termination services on public telephone networks and five relevant wholesale markets for mobile call termination services on public telephone networks. For all these markets, the Authority maintains, or imposes, as appropriate, obligations related to the identified competition issues, such as transparency, non-discrimination, price control and cost-orientation (also maintaining the symmetry of termination rates), as well as the obligation to allow access to and use of specific network elements and of the associated facilities.

Tariffs for call termination

All the 37 fixed telephony operators identified with significant market power must apply call termination rates that cannot exceed 0.14 eurocents/minute, VAT not included, the threshold in force from 1 April 2014. The list of fixed telephone operators to which the proposed regulatory measures will apply, is available here.

Furthermore, the call termination tariff to be applied by the five mobile telephony operators with significant market power (Lycamobile S.R.L. - full mobile virtual network operator, Orange Romania S.A., RCS & RDS S.A., Telekom Romania Mobile Communications S.A. and Vodafone Romania S.A.) remains the one in force as of 1 April 2014, i.e. 0.96 eurocents/minute, VAT not included.

Thus, ANCOM currently maintains the fixed and mobile call termination tariffs, cost-oriented, based on the pure LRIC methodology, a model completed in early 2014 and based on detailed forecasts up to 2020 on the evolution of relevant parameters included, but is considering including the review of the pure LRIC model in the 2018 action plan.

Access to specific network elements and to associated facilities

Moreover, ANCOM's decisions lay down the obligation of fixed network operators, as well as of mobile network operators identified as having significant market power, to provide the IP-based interconnection service in accordance with nationally harmonized technical requirements. The measure will apply from 1 January 2019, but not earlier than 6 months from the entry into force of the decision on the adoption of harmonized technical requirements at national level. The measure is determined by the current national context, in which certain fixed and, respectively, mobile service providers, that own IP networks, encounter the refusal of other fixed or mobile telephony operators to provide IP-based interconnection services, which creates and maintains a number of competitive issues.

Notification at European level

According to the European regulatory framework, after adopting the Decision, ANCOM will notify the European Commission, the Body of Electronic Communications Regulators (BEREC) and the national regulatory authorities of the other Member States on the proposed measures. The European Commission, BEREC and other regulatory authorities will be able to send comments and observations to ANCOM within one month from the notification date.