ANRC analysed Romtelecom’s request regarding retail tariffs rebalancing, together with the support documents elaborated according to ANRC requirements, based on the provisions of the Regulation on keeping separate accounts within the internal accounting system by the company Romtelecom S.A., approved by the Decision of the President of ANRC no.1380/2003, and a certified auditor’s report drawn up in accordance with the International Audit Standards. Upon ANRC request, Romtelecom also conducted a set of sensitivity analyses, whereby it showed the effect of variation of the income, expenditure and average invested capital on the capital profitability.
Following the analyses conducted on the above mentioned basis during November – December 2004, ANRC agreed on modifying the following tariff categories:
| New tariffs as of February 1st, 2005 | |||
| Increase (average) | Decrease (average) | ||
| Monthly rentals | 34.1% | Long-distance calls, peak hours | 10% |
| Calls to mobile networks | 3.4% | ||
| International calls | 9.1% | ||
According to the current policy on medium term tariff rebalancing, ANRC decided to continue the tariff rebalancing process, this being absolutely necessary in order to fulfil the objective of promoting competition. The monthly rental charges applied by Romtelecom were found to be below the level of effective costs, which affects the ability of the alternative operators to compete in the market for the provision of network access. Therefore, in the medium to long term, an alternative operator could not afford to offer monthly rentals charges comparable to Romtelecom’s, since these charges do not cover the effective costs for the provision of service, and the alternative operators cannot subsidize these services from other profitable services.
On the other hand, with a view to promoting investments in infrastructure, ANRC aimed to create the conditions for capital profitability to reach a level that would encourage investments in the development of the access infrastructure, both in Romtelecom’s case and in that of the alternative operators.
Therefore, ANRC agreed on the proposal of modifying the subscription types, excepting for the social subscription and for the subscriptions with no calls included, and of amending the tariffs for the following subscription categories:
CURRENT | Current tariff (EUR/month VAT not included) | APPROVED | Approved tariff (EUR/month VAT not included) | Tariff amendment (ROL/month, VAT-included) **** | |||
| Individual line | Coupled line | Individual line | Coupled line | Individual line | Coupled line | ||
| 1. Restricted MTL* (Social Subscription)** | 1.80 | 1.80 | 1. Restricted MTL (Social Subscription)** | 3.50 | 3.50 | 78294 | 78294 |
| 2. MTL with no calls included, in automated networks | 3.31 | 2.40 | 2. MTL MTL with no calls included, in Romtelecom’s automated network | 4.90 | 4.00 | 73228 | 73689 |
| 3. MTL with EUR 0.80 value of calls included***, in automated networks | 4.10 | 3.20 | 3. MTL with 35 minutes included – local calls during peak hours, in Romtelecom’s automated network | 5.70 | 4.80 | 73689 | 73689 |
| 4. MTL with EUR 1.65 value of calls included***, in automated networks | 4.90 | 4.00 | 4. MTL with 50 minutes included – local calls during peak hours and 10 minutes included – long-distance calls during off-peak hours, in Romtelecom’s automated network | 6.40 | 5.50 | 69083 | 69083 |
| 5. New subscription: | 5. MTL with 20 minutes included – local calls during off-peak hours, in Romtelecom’s automated network | 5.00 | 4.10 | n/a | n/a | ||
* MTL = Main Telephone Line
** Only for existing subscribers
*** Local and long-distance calls, in Romtelecom’s network
**** EUR 1 = ROL 38702
ANRC also agreed on amending the tariffs for certain call categories, as provided in the table below:
| Call Type | Current tariff (eurocents/min) | Approved tariff (eurocents/min) | Tariff amendment (ROL/min) * |
| Long-distance calls during peak hours | 6.0 | 5.4 | -276 |
| Calls to mobile networks | 14.5 | 14.0 | – 230 |
| International calls |
|
| average decrease: – 9.1% |
* Discounts calculated based on VAT-included tariffs (EUR 1 = ROL 38702)
These tariffs will come into force on February 1st, 2005.