ANCOM

The Decision of the ANRC President regarding the principles and preliminary conditions of the reference offer for unbundled access to the local loop has been adopted today, July 28th, 2004. The document establishes the conditions under which S.C. Romtelecom S.A. shall provide access for the interested companies to the local loop consisting of the twisted metallic pair, so that they could provide broadband electronic communication and telephony services.

All the interested companies will have the possibility to provide services directly to the end-user’s residence or premises, regardless of whether the respective provider has its own access network (local loop). Following the ANRC decision, the providers of broadband Internet and telephony services will be allowed to use the same physical circuits by which the final users are connected to the Romtelecom network.

Unbundled access to the local loop may be provided both as full and as shared access. By full access to the local loop the interested companies will be able to lease all the twisted metallic pairs connecting the terminal equipment at the end-user’s residence to the Romtelecom network, both for the provision of telephony services and for ensuring access to broadband Internet. By choosing the alternative of shared access to the local loop, the interested companies will lease only the high frequency spectrum of the local loop, which Romtelecom does not use for the provision of telephony services, with a view to provide broadband Internet services, while Romtelecom may simultaneously continue to provide telephony services to the end-user by means of the same circuit.

The ANRC Decision establishes the maximum tariffs Romtelecom will be entitled to charge from the interested companies for access to the local loop. The tariffs are indicated in the table below:

Monthly lease tariff (VAT not included)

Connection tariff (VAT not included)

Full access to the local loop

EUR8,37

EUR59

Shared access to the local loop

EUR4,2

EUR59

Within 45 days, Romtelecom shall publish (at least on its Internet page) and provide upon request a reference offer for the unbundled access to the local loop (RUO) which must mention at least the service package for the provision of unbundled access to the local loop and the conditions under which the respective services will be provided to the beneficiaries (including the provisions regarding tariffs).

The ANRC Decision also establishes the deadline for the negotiations with a view to signing a new frame-agreement for the provision of unbundled access to the local loop based on the reference offer, which is within two months from the registration of an application by Romtelecom.

Romtelecom will also have to offer the interested companies the possibility to install and connect all the required equipments for the provision of unbundled access to the local loop, within the co-located area. As well, upon the industry’s requests, received during the consultation procedure, ANRC requires Romtelecom that within two months from the publication of the RUO, it prepares the co-location area at 10 access points in Bucharest, with a view to the easier implementation of the unbundled access to the local loop.

The new ANRC regulations offer electronic communications companies new opportunities for the provision of broadband Internet and telephony services, giving the green light to the DSL technologies in Romania.

The full text in Romanian of the Decision may be consulted on the ANRC website.