30.10.2020

1 November 2020 marks the entry into force of the decrease by 30% of the maximum fixed call termination rate, as imposed by ANCOM, the new maximum rate being capped at 0.098 eurocents/minute. The Authority’s regulatory measure applies to interconnection agreements signed with the fixed telephony operators having significant market power, and will be reflected in the invoice value paid by the end-users based on each operator’s commercial policy.

Maximum fixed call termination rate

From 1 November 2020, the fixed telephony operators designated by ANCOM as having significant market power will be allowed to apply a maximum rate of 0.098 eurocents/minute for national calls, calls initiated from the European Economic Area (EEA), and for calls initiated from non-EEA networks, if the international agreements in force do not provide for the establishment of a different charging regime. The list of fixed telephony operators concerned by the regulatory measures is available here, and the regulatory decisions issued by ANCOM are available here.

Determining the new rate

From 1 April 2014, ANCOM capped the maximum fixed call termination rate at 0.14 eurocents/minute, based on a pure LRIC cost calculation model, in pursuit of promoting competition, maximizing end-users’ benefits and fostering efficient investment, in line with the harmonized methodology set out in Recommendation 2009/396/EC. ANCOM’s measure of cutting this rate down to 0.098 eurocents/minute followed the updating of several parameters in the previous cost calculation model, as well as of the cost of capital.

Regulatory framework

ANCOM’s regulation on setting the maximum fixed call termination rate at 0.098 eurocents/minute went through the European consultation process. On 3 August 2020, it was communicated to the European Commission, to BEREC and to the national regulatory authorities of the other EU Member States. Following validation, the measure may enter into force on 1 November 2020.

At present, Directive (EU) 2018/1972 provides for setting a single maximum Union-wide mobile voice termination rate and a single maximum Union-wide fixed voice termination rate, by 31 December 2020 at the latest. During 25 August - 22 September 2020, the European Commission published for public consultation the draft act on implementing the Eurotariff.