02 December 2011
02.12.2011
The National Authority for Management and Regulation in Communications (ANCOM) has published today for public consultation the new methodology on the elaboration by Romtelecom of the accounting separation within the internal cost accounting system.
In its capacity as a provider designated as having significant power on several markets, Romtelecom has to observe the obligation to keep separate accounts with a view to ensure a high level of transparency concerning costs and tariffs. The accounting separation obligation will offer ANCOM the necessary support for monitoring the compliance with the non-discrimination obligation, since this obligation emphasizes in a transparent manner the tariffs charged on the wholesale markets and the internal transfer prices, as well as the possible occurrence of competition deficiencies related to cross-subsidization, predatory pricing etc.
The rival operators need to be certain that Romtelecom does not unduly discriminate between its own retail business and its competitors, or, in the event of provision of similar services to various operators, between competitors.
Following the second round of market analyses undertaken by ANCOM, Romtelecom was designated, in 2010, as a provider with significant power on the market of access to the public telephone networks provided at a fixed location. However, the operator was not identified as having significant power on the market of voice services provided at a fixed location and thus the separate accounting and the price control obligations were removed.
It is therefore necessary to adopt a new accounting separation regulation to be observed by Romtelecom in order to reflect that it is no longer justified for Romtelecom to provide information concerning the markets where the separate accounting obligation previously imposed on the operator was removed, on the one hand, and to emphasize the need to improve, as quality is concerned, the information presented in the separated financial statements, on the other hand.
Romtelecom will concomitantly provide the Authority with the necessary details upon the explicit imposition of certain obligations, such as ensuring that the existing margins between the tariffs for its own retail business and the tariffs charged on the wholesale markets are sufficient. Furthermore, according to the new methodology, Romtelecom will submit to the Authority additional information on the adoption of the new technologies and on the allocation of the due costs, revenues and capital engaged.
The draft decision on the achievement by Romtelecom S.A. of accounting separation is available for consultation on the ANCOM website, here. The interested persons are invited to send their comments and suggestions, by 06.01.2012, to the ANCOM headquarters in 2 Delea Noua Street, Bucharest 3, directly to the ANCOM Registry Office or by means of ANCOM territorial divisions. Comments and recommendations may also be sent by fax to +40 732 845 404 or by e-mail to consultare@ancom.org.ro.