Thursday, August 14, 2003, the National Regulatory Authority for Communications (ANRC) launched for public consultation the following projects: Decision for the approval of the regulation regarding the realization of the „top-down” Long Run Incremental Cost Calculation by the Commercial Society „RomTelecom” – S.A. and Decision on the approval of the regulation regarding the realization of the accounting separation within the Internal Cost Accounting System by the Commercial Society „RomTelecom” – S.A.
The first project includes the regulation based on which RomTelecom will elaborate a LRIC cost calculation model (Long Run Incremental Cost), allowing the orientation towards costs of the tariffs charged by RomTelecom for the interconnection of, and access to its network. This model will consist in the allocation of the current costs of RomTelecom on services, in accordance with the principles elaborated by ANRC, also taking into consideration certain efficiency criteria. At its turn, ANRC, in order to determine the tariffs RomTelecom has the obligation to orient to costs, will draw up a second LRIC cost calculation model, where the introduced information will take into account the practices and the performances of the efficient operators in the international market. The calculation model elaborated by RomTelecom will have to be flexible enough to allow the comparison between the data resulted from implementing the two models. The models will be subject to a reconciliation process meant to ensure the correctness of the company’s costs determination and the transparency of the method for setting out the tariffs charged by the fixed telephony national operator.
The regulation comprises, among others, the description and the range of details regarding the calculation model imposed by RomTelecom, the definition of the services analysed within the model, and the principles for determining the current costs afferent to the fixed assets.
The draft decision also stipulates the obligation of RomTelecom to send to ANRC until March 31, 2004 the documentation for the cost calculation model, to be developed and implemented before June 30, 2004.
The draft Decision on the approval of the regulation regarding the realization of the accounting separation within the Internal Cost Accounting System by the Commercial Society „RomTelecom” – S.A. sets out the ways RomTelecom achieves the accounting separation for the activities connected with the interconnection of, and access to the network or the associated facilities. The transport network, the access network, and the retail sale are the most important business units for which the company will have to prepare separate financial statements.
The imposing of the accounting separation will ensure the RomTelecom’s observance of the transparency and non-discrimination obligations and of the obligation to charge cost oriented tariffs. These separate accounting statements will offer a clear and transparent image of the wholesale prices and of the internal prices for achieving the transfer between RomTelecom’s businesses, as if these businesses were developed by distinct entities. This will also prevent cross-subsidies.
The drafts are available on ANRC Internet page. The public consultation process for both projects will end on September 12, 2003.
All interested parties can forward their comments at fax no.: 307 54 02 or at the address: consultare@anrc.ro.