The Last Meeting of the Consultative Council for the Year 2003

On December 15, 2003, at the headquarters of the National Regulatory Authority for Communications, took place the reunion of the Consultative Council, during which there were debated seven draft decisions that underwent the public consultation process. The meeting was attended by representatives of ANRC, the electronic communications industry and other organizations interested in the provisions of the drafts under discussion.

The agenda of the meeting comprised the following documents: drafts of the Decisions for the Approval of the Regulations regarding the Realization of the „top-down” Long Run Incremental Cost Calculation by „Mobifon” – S.A., „Orange Romania” – S.A. and „Romtelecom” – S.A., the draft Decision for the Approval of the Regulation for the Implementation of the Accounting Separation, within the Internal Cost Accounting System by „Romtelecom" – S.A., the draft Decision on the Interconnection of Leased Lines – Terminal Segments with the Fixed Public Telephone Network, as well as the two draft Decisions on the Amendments and Additions to ANRC President’s Decision no.147/2002 on the Principles and Prerequisites of the Reference Offer for Interconnection with the Public Fixed Telephony Network – Indirect Interconnection and for Interconnection with the Public Fixed Telephony Network – Intelligent Network Services.

The final version, under discussion today, of the two draft Decisions for the Approval of the Regulations regarding the Realization of the „top-down” Long Run Incremental Cost Calculation by „Mobifon” – S.A., „Orange Romania” – S.A. contains changes aimed at facilitating the carrying out of the tasks imposed on the two companies by these documents. Following the consultations, ANRC decided not to impose on the mobile telephony operators the obligation to audit the cost calculation models they will elaborate and to no longer require therefore the services of an independent auditor. However, in case information sent by the mobile operators is considered insufficient and ambiguous, ANRC has the right to impose further obligations regarding the audit.

The document regarding the „top-down” long run incremental cost calculation model that is to be realized by „Romtelecom” – S.A comprises two major changes: the extension of the deadline for the company to finalize the cost calculation model, the new deadline being August 31, 2004, and the introduction of detailed explanations about how the ANRC experts will realize the „bottom-up” cost calculation model. The latter completion has the role to guide and help the company during the process of realizing the cost calculation model.

The draft Decision on the Interconnection of Leased Lines – Terminal Segments with the Fixed Public Telephone Network sets out the obligations Romtelecom has as operator with significant power on the market of the provision of leased lines-terminal segments services: transparency, non-discrimination when concluding the interconnection agreements with other operators’ networks for the provision of leased lines-terminal segments services, and the obligation to charge cost oriented tariffs and to keep separate accounting. Based on the comments received during the public consultation process, ANRC made certain amendments to the document as regards the extension of the Romtelecom obligation to include in the reference offer all the types of leased lines provided on the retail market and the method for setting out the tariffs for leased lines-terminal segments. With respect to the second change and as regards the setting out of interconnection tariffs on the leased lines market, ANRC decided to also take into consideration other models or methods for cost calculation, besides the LRIC model initially imposed on „Romtelecom” – S.A.

According to the Decision on the Interconnection of Leased Lines – Terminal Segments with the Fixed Public Telephone, „Romtelecom” – S.A has the obligation to update the RIO in 60 days from the date this decision is communicated and to submit to ANRC approval the tariffs for the provision of interconnection services for leased lines-terminal segments, in 15 days. The operator requested the extension of the deadline until January 31, 2004, and this request will be analysed by ANRC.

According to the Decisions on the Amendments and Additions to ANRC President’s Decision no.147/2002 on the Principles and Prerequisites of the Reference Offer for Interconnection with the Public Fixed Telephony Network – Indirect Interconnection and for Interconnection with the Public Fixed Telephony Network – Intelligent Network Services, in 30 days from the date this decision is communicated, „Romtelecom” – S.A. has the obligation to ammend and complete the reference offer for the interconnection with the fixed public telephone network he operates, on grounds of this decision’s provisions. Romtelecom’s request to extend this deadline until February 27, 2004 will be analysed, and ANRC will take a decision before the end of the year.

All the documents discussed today during the Consultative Council may be consulted on ANRC Internet page.