National Regulatory Agency for Electronic Communications and Information Technology of the Republic of Moldova

The National Regulatory Agency for Regulation in Electronic Communications and Information Technology (ANRCETI – www.anrceti.md) set, for the first time, special ex-ante obligations for providers with significant market power on the markets for voice call termination on individual fixed telephone networks and voice call termination on mobile telephone networks, for the purpose of preventing the use of SMP against competition. The corresponding Administrative Board Decisions entered in force on the date they were adopted – 23.12.2010 – and were delivered to the providers concerned. The provisions of the decisions will be published in the Official Gazette.

The obligations were imposed to 18 providers designated as having significant market power on the given markets in November 2010 by ANRCETI. The biggest number of special ex-ante obligations is imposed on joint stock companies „Moldtelecom”, „Orange Moldova” and „Moldcell”. The first two companies have obligations in duet on their significant market power on both relevant markets: voice call termination on individual fixed telephone networks and voice call termination on mobile telephone networks, whereas company „Moldcell” – on the market for voice call termination on its individual mobile telephone network.

The three providers have the obligation to offer, at the request of other operators, access to their networks for call termination, to ensure the provision of these services under no discrimination and transparently. So, these providers are liable to make their reference interconnection offers publicly available. As for JSC „Moldtelecom”, it is liable to keep separate accounting for its activitites.

According to ANRCETI decisions, 18 providers with significant market power on the mentioned markets are bound to adjust the tariffs for call termination service to costs. For this obligation to be fulfilled, ANRCETI fixed a transition timeframe for gradual adjustment of tariffs for call termination on mobile and fixed networks, as of January 1, 2011. According to ANRCETI estimations, the tariffs will decrease 3 times by January 1, 2014. Currently, the tariff for call termination on mobile networks is 7 USA cents per minute, on fixed networks – 3,19 USA cents per minute.

By this decision, ANRCETI imposed the 18 providers the special obligation of removing, before the beginning of 2014, the discrimination of traffic by call origination.

The Agency consider that meeting the ex-ante obligations imposed to JSC „Moldtelecom”, „Orange Moldova” and „Moldcell”, as well as other providers, will contribute to the facilitation of the interconnection process and market entry. Also, the drop in tariffs for call termination on fixed and mobile networks will make the competition on retail mobile, fixed and broadband markets more dynamic, which factor will provide long-lasting benefits for end-users.

The decisions were developed by ANRCETI pursuant to the Law on Electronic Communications and are based on the regulatory practice recommended in the corresponding EU Directives.

December 30, 2010