According to the draft decisions launched for public consultation today, January 22, 2008, by the National Regulatory Authority for Communications and Information Technology (ANRCTI), the regime of interconnection with the largest two operators of fixed telephone networks, Romtelecom and RCS & RDS, could be reviewed, whereas interconnection with other 31 operators could be regulated, for the first time, starting from the second quarter of the current year.
The draft decisions propose – in line with the European rules and practices, for regulatory purposes – the identification of the relevant markets for the services of call termination, at fixed locations, on each of the above-mentioned operators’ networks, the designation of each of the 33 operators as having significant market power, as well as the interconnection obligations to be imposed on them.
In view of preventing abuse of dominant position, ANRCTI deems adequate to impose proportionate obligations of transparency, non-discrimination, accounting separation, access to the provider’s network and the associated facilities, as well as measures related to interconnection tariff control. The proposed obligations are aimed at dealing with the competition problems identified by the Authority in the realm of call termination on the fixed telephone networks: refusal of negotiating interconnection agreements, lack of transparency, applying discriminatory terms and tariffs and even excessive pricing.
The regulatory measures under consultation vary in direct proportion with the operators’ market position. Thus, as regards interconnection with the network of Romtelecom, ANRCTI proposes the whole set of obligations imposed on this operator by previous regulations to be maintained – the obligations of transparency, of non-discrimination, of separate accounting, the obligation of granting access and permission to use specific elements of the network and of the associated infrastructure, as well as the cost-orientation obligation. Furthermore, ANRCTI proposes to establish, for each level of interconnection with the network of Romtelecom, a unique value of the regulated tariff, as an average tariff, repealing the current regulatory regime, which sets different interconnection tariffs, itemised by time of the day (for peak hours and, respectively, for off-peak hours).
Concerning interconnection with the network of RCS & RDS, the Authority proposes to uphold the transparency obligation as well as the obligation of granting access and permission to use specific elements of the network and of the associated infrastructure. Moreover, ANRCTI proposes that RCS & RDS should be imposed the obligation of non-discrimination and an amended tariff control obligation. The obligations envisaged for RCS & RDS are targeted also at the third largest operator in the Romanian fixed telephony market, UPC Romania.
ANRCTI also considers imposing on the other 30 alternative operators of fixed telephone networks the obligations of transparency, of non-discrimination, of granting access and permission to use specific elements of the network and of the associated infrastructure, as well as of tariff control. These obligations are justified by the need to ensure that the operators would not use their market power – by virtue of their monopoly position in the realm of call termination on their own network– to the competitors’ detriment, jeopardizing the end-users’ interest.
The tariff control obligation imposed on the alternative operators involves establishing a target-level of their interconnection tariff equal, on average, to Romtelecom’s average regional interconnection tariff. Romtelecom’s regional interconnection tariff was established by ANRCTI based on the hybrid cost calculation model and represents, in the Authority’s opinion, the cost of an efficient operator in the market for services of call termination, at fixed locations, at least for the period covered by the market analysis. ANRCTI proposes a glide path for cutting the current interconnection tariffs charged by the alternative operators down to the target level, in two steps, until the end of 2009. Thus, the current average interconnection tariffs charged by the operators who are not within the scope of regulations yet, should decrease, following the entry into force of the decisions, to the level of 1.15 €cents/minute, and subsequently, from January 1, 2009, it should reach 0.97 €cents/minute, i.e. the level of the regional average tariff for interconnection with the network of Romtelecom.
The list of providers with significant market power in the markets for call termination, at fixed locations, on the public telephone networks, is available here; this list has a provisional character and may be modified following the consultation procedure. Therefore, the Authority invites the interested persons to submit their opinion on the necessity of extending or restraining the list, as well as on other issues raised in the analysis, on defining the relevant markets and the proposed remedies etc.
Upon closing the public consultation and analysing the comments and suggestions received, according to the provisions of the European regulatory framework in the field, applicable since Romania’s accession to the European Union, ANRCTI will notify the European Commission and the national regulators in the other EU member states on the proposed set of regulations, which includes the definitions of the identified relevant markets, the designation of providers with significant market power, as well as the obligations envisaged for the analysed markets, alongside the reasons grounding these measures. The European Commission and the other regulatory authorities will be invited to send comments and suggestions to ANRCTI within one month from the notification date and ANRCTI shall take into account the respective comments and suggestions in the adoption of the proposed set of regulations.
The draft decisions regarding the relevant markets for services of call termination, at fixed locations, the designation of the providers with significant power on the relevant markets, as well as the imposition of remedies on these providers are available for consultation on the ANRCTI website. The interested persons are invited to send their comments and suggestions by 22.02.2008, to the ANRCTI headquarters (14 Libertatii Blvd., sector 5, Bucharest) or directly to the ANRCTI registration office, as well as to its territorial offices in the closest county capital city. Comments may be sent, as well, by fax, to +40 21 307 54 02, or by e-mail to consultare@anrcti.ro.