ANCOM

Starting next year, the providers of public electronic communications networks and of publicly available electronic communications services may choose to contribute to the universal service fund in direct proportion to the income resulted exclusively from the provision of electronic communications networks or services. At present, the amount of the providers’ contribution to the Universal Service Fund is calculated as a percentage of their whole turnover, as provided in the previous year’s financial statements.

The Universal Service Fund, collected from the contributions of the providers of public electronic communications networks and of publicly available electronic communications services, is the source for financing the access of all Romanian citizens to the services within the scope of universal service, at affordable tariffs. This fund makes possible the installation of telecentres and public pay telephones, as well as the subsidization of subscription charges.

The new calculation mechanism for the providers’ contribution to the Universal Service Fund has been established by the
ANRC President’s Decision no.1298/2005 on the amendment and completion of the Decision of the President of the National Regulatory Authority for Communications no.1074/2004 on the implementation of universal service in the electronic communications sector, published on Monday, September 12, 2005, in the Romanian Official Journal, Part I. This decision provides the possibility that every operator contributing to the Universal Service Fund could choose one of two calculation methods:

a) calculate the contribution to the universal service fund as a percentage from the whole turnover (as currently in force);

b) calculate the contribution to the universal service fund as a percentage from the income obtained from the provision of electronic communications networks and services and of postal services, should the respective provider keep separate accounts for these activities, conducted and audited under the terms established by ANRC.

Where the providers bound to contribute to the Universal Service Fund offer audio-visual transmission services as well, they may choose that the amount of the contribution should be calculated:

a) as a percentage of the turnover, minus the income resulted from the provision of audio-visual transmission services;

b) as a percentage of the income resulted exclusively from the provision of electronic communications networks or services, minus the income resulted from the provision of audio-visual transmission services, where the respective provider keeps separate accounts for these activities.

In both cases above, the contribution shall be established after deducting the income resulted from interconnection and from roaming services offered on the wholesale market to the providers of mobile telephone services outside Romania for their users situated on the Romanian territory (as currently in force).

For 2006, ANRC is analysing the necessity of identifying and lauching for public consultation a set of solutions for the improvement of the subsidization scheme, in order to develop a system of social tariffs/packages for the families with an average monthly income below RON310 per family member – according to the Policy and Strategy Paper on the Implementation of Universal Service in the field of electronic communications.

Additional Information

Who are the providers bound to contribute to the Universal Service Fund?

Providers of public electronic communications networks and providers of publicly available telephone services having registered a turnover of at least EUR 3 million during the year preceding the one for which the respective contribution/obligation is due to be paid to ANRC.

What is the amount of this contribution?

For 2005, the contribution to financing the Universal Service Fund amounts to 0.5% of the turnover provided in the 2004 annual financial statements, minus the income resulted from interconnection and from roaming services offered on the wholesale market to the providers of mobile telephone services outside Romania for their users situated on the Romanian territory. In 2005, a provider’s contribution to the Universal Service Fund may not exceed EUR2,000,000.

Starting from 2006, the amount owed by a provider to ANRC for the Universal Service Fund may not exceed EUR3,000,000.

If the amount owed by the provider reporting the largest turnover exceeds the maximum limits provided, the percentage shall be diminished, so that the respective contribution should not exceed EUR2,000,000 (for the year 2005) or EUR3,000,000 (for the year 2006). This percentage shall be considered, on a non-discriminatory basis, for all the providers contributing to the Fund.

For 2007-2010, the providers’ contributions shall be calculated starting from the financing needs identified based on the priorities of implementing the Universal Service established by ANRC for each year for the purpose of achieving the policy and strategy objectives regarding the implementation of Universal Service.