Press Releases

ANCOM proposes lower mobile termination rates

12.08.2019
 
ANCOM has launched a public consultation on the proposed maximum mobile call termination rate to be implemented from 1 January 2020. “According to the European legislation, not later than end-2020, all the operators in the single market will charge a single maximum EU-wide mobile voice termination rate and a single maximum EU-wide fixed voice termination rate. In pursuit of keeping the competitiveness standards of the Romanian electronic communications market, with increasingly attractive offers for the users, we propose reducing the current maximum mobile call termination rates by 10%, as a transitional measure towards the single EU-wide termination rate. ANCOM has calculated the proposed rate according to the European Commission recommendations.”, declared Sorin Grindeanu, president of ANCOM.
 
The proposed maximum mobile call termination rate
On 20 December 2018 Directive (EU) 2018/1972 entered into force, providing for the application of a single maximum Union-wide voice termination rate for mobile services and a single maximum Union-wide voice termination rate for fixed services, not later than 31 December 2020.
As a transitional measure, until the adoption of a single maximum Union-wide voice termination rate, ANCOM proposes the application of a maximum regulated rate of 0.76 eurocents/minute, instead of the currently in force rate of 0.84 eurocents/minute. The new rate has been determined based on European benchmark, as an average of the mobile call termination rates in the Member States of the European Union that used a pure LRIC model. The new rate will be applied starting 1 January 2020.
 
The operators designated as having significant market power - Lycamobile S.R.L., Orange Romania S.A., Vodafone Romania S.A., RCS&RDS S.A. and Telekom Romanian Mobile Communications S.A. – will have the obligation to observe the maximum regulated rate for the provision of call termination services at mobile locations on one’s own network.
 
Therefore, ANCOM deems that the appropriate step for the Romanian market, for the remaining period until the application of the single EU-wide rate, is reviewing the current transitional level of the mobile termination rates, determined as an average of the mobile call termination rates in the Member States of the European Union that used a pure LRIC model, based on the information in the latest BEREC Report on the termination rates at the European level.
 
After the completion of the national public consultation, the regulated maximum mobile call termination rate proposed by ANCOM will follow the European consultation procedure.
 
Applicability of the regulated maximum rate
The rate proposed by ANCOM will apply, starting 1 January 2020, for domestic calls, for calls initiated in the European Economic Area (EEA), as well as for those initiated outside the EEA, where the international agreements in force do not provide for a different charging regime.
 
The public consultation
The measures proposed by the National Authority for Management and Regulation in Communications with a view to setting a maximum mobile call termination rate are available, in Romanian, here. The interested parties are invited to submit their comments and suggestions, by 11 September 2019, at the ANCOM headquarters (2 Delea Noua Street, Bucharest 3), directly to the ANCOM Registry Office or by means of ANCOM’s regional divisions. Comments may also be sent by fax to +40 372 845 402 or by e-mail to consultare@ancom.org.ro