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

The National Regulatory Agency for Electronic Communications and Information Technology (ANRCETI – www.anrceti.md) established a number of special ex-ante obligations for JSC „Moldtelecom” as the company has significant market power on two relevant markets: the market for call origination at fixed locations (translation in progress) in the fixed telephone network (market no.2) and market for traffic transit (translation in progress) in fixed telephone networks (market no.9). ANRCETI Administrative Board Decisions to this effect entered in force on the date they were adopted - 01.11.2011 - and will be published in the Official Gazette.

Previously, ANRCETI identified the two wholesale markets as susceptible to ex-ante regulation, made them subject to detailed analysis, which proved lack of competition and significant market power of JSC „Moldtelecom” on both markets. The analysis showed that JSC „Moldtelecom” held 98% of market 2 and 100% of market 9. In order to prevent JSC „Moldtelecom” from making abuse of its significant market power to the detriment of competition, ANRCETI imposed specific obligations, as prescribed by the Law on Electronic Communications, one of which is to cost-orient the wholesale prices for services offered to other providers.

By its decisions, ANRCETI established that JSC „Moldtelecom” is entitled to charge a maximum price of 0.062 per minute (without VAT) from other providers, for calls to geographic numbers from the local fixed network corresponding to the point of interconnection carrying the call, and for local traffic transit service. For calls to other geographic and non-geographic numbers independent of location and to long-distance traffic transit service, JSC „Moldtelecom” will be charged - 0.142 lei per minute (without VAT).

The prices for the first three services are practically equal to the current prices, whereas the price for long-distance traffic transit is 20% lower than the price currently applied. This price will reduce the cost of transit incurred by alternative providers for telephone call transit, which will improve their competitiveness.

JSC „Moldtelecom” is liable to publish the prices established by ANRCETI for the aforementioned service, including in its reference Interconnection Offer (RIO). However, JSC „Moldtelecom” was placed under the obligation to offer to requesting providers access to its infrastructure, so that the latter are able to interconnect for call origination and traffic transit; to ensure the transparency in the provision of these services, by making the interconnection agreements for call origination and traffic transit publicly available on its web site; to ensure fair conditions, under equal circumstances, to all providers using or requesting interconnection for the provision of the mentioned services, as well as separate cost accounting.

ANRCETI will continuously monitor the way JSC „Moldtelecom” meets its obligations, as a monitoring tool using the analysis of RIO and interconnection agreements on call origination and traffic transit, which JSC „Moldtelecom” will sign or update. The latter is bound to notify ANRCETI and its interconnection partners of its intention to modify the RIO 30 days in advance, whereas for interconnection agreements - to file copies of those to ANRCETI within 10 days after they are signed or updated.

November 8, 2011