Monday, September 25, 2006 – ANRC launches for public consultation a draft decision establishing the price cap formula for the retail services of Romtelecom, on the markets where this company was designated to have significant power. The application of the price cap formula will span 3 years, starting from 2007, and will allow Romtelecom an average maximum increase of the tariffs for the regulated retail services equal with the inflation rate (the increase of the consumption price).
This price cap formula will contribute to achieving two objectives, simultaneously: it triggers the transfer of part of the Romtelecom productivity growth to the end-users and enables this company to recover the rise of the costs it cannot control. The price cap formula allows flexibility in establishing individual tariffs, giving the operator the possibility of rapid reaction to the changes in the market.
Besides the price cap formula, ANRC established a set of limitations regarding the tariff increase for the services whose current prices are above costs, as well as regarding tariff cuts for the services whose current prices are below costs. Thus, Romtelecom must submit to the ANRC approval any reductions of the monthly rental fees and of the tariffs for calls for special Internet access, as well as any increase of the tariffs for local, long-distance and international calls, as well as for fixed-to-mobile calls.
Furthermore, in order to prevent anti-competitive behaviour, Romtelecom will have to obtain the ANRC approval for each new service package or tariff reduction scheme.
The consultation document is available on the ANRC website. All interested persons are invited to send their comments and suggestions by October 26th, 2006, by mail, to the ANRC headquarters (14 Libertatii Blvd., 5th District, Bucharest) or directly to the ANRC registration office or to the closest territorial office of ANRC. Answers may be sent also by fax to +40 21 307 54 02 or by e-mail to consultare@anrc.ro.