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29 November, 2023

ANRCETI set four more stages of tariff reduction for mobile and fixed call termination

From 1 January 2013, providers with significant power on the markets for mobile and fixed call termination in their individual networks are required to continue bringing down the tariffs for termination of local/national calls, originated from other networks. The tariffs will be reduced gradually, every semester (in four stages), so that on July 1, 2014, the tariffs become LRIC-Cost-based (Long-Run Incremental Cost). This obligation is prescribed in the Decisions (docs in state language) of ANRCETI Administrative Board, on modification and additions to its previous decisions of 23.12.2010 on imposing special preventive obligations on SMP providers on the markets for fixed/mobile call termination on individual networks.

According to these decisions, three mobile providers (JSC „Orange Moldova”, JSC „Moldcell” and JSC „Moldtelecom”) are liable to bring down, in the timeframe 01.01.2013 – 01.07.2014, the tariifs applied for national call termination by 62,7%, from 4,1 USD cents/min. to 1,53 USD cents/min. The decisions with reference to the fixed telephony providers (JSC „Moldtelecom”, LLC „Arax-Impex”, JSC „Orange-Moldova”, LLC „Starnet”, LLC „Sun Communications”, - 15 providers) require that, starting 01.01.2013, they apply the LRIC-based tariff of 0,58 USD cents/minute (reduction by 48,5%) for termination of local calls originated at geographic numbers for fixed networks and non-geographic independent of location, whereas for national calls, they apply a single 0,66 USD cents/minute. Also these providers are bound to bring down, in the timeframe 01.01.2013 – 01.07.2014, the tariffs for termination of local calls originated in mobile networks by 58,3%: from 1,39 USD cents/min. to 0,58 USD cents/min., termination of national calls and national short numbers originated in mobile networks – by 59,8%: from 1,64 USD cents/minute to 0,66 USD cents/minute.

With respect to the tariffs for termination of international calls, ANRCETI decisions provide that before 31.12.2016, they will be established by the supplier, according to the market conditions. If the provider fails to announce, before 31.12.2015, about the measures undertaken in order to apply LRIC cost oriented tariffs, he will be required, in accordance with ANRCETI decision, to adjust the tariffs in four stages half a year each, starting 01.01.2017. These stages being over, the provider will be liable to apply equal treatment of calls in terms of tariffs applied, regardless of their origin.  

The first obligations of gradual reduction of tariffs, in four stages six months each, for termination of calls in individual mobile and fixed networks were imposed on SMP providers for the timeframe 01.01.2011 - 31.12.2012. Thus, in this timeframe the tariffs for termination of national calls in mobile networks went down by 41,4 %, compared to 2010, from 7 USD cents/min. to 4,1 USD cents/min.

The reduction of call termination tariffs aims to create equal conditions for all telephone operators, regardless of the size of the network, customer base and time of entry on the market, so that the end users benefit from quality service at competitive tariffs. ANRCETI specialists consider that the reduction will enable the operators to apply lower tariffs for the calls made by their subscribers to other networks.   

LRIC costs are additional costs of the provider which occur when the latter takes a long-term decision to provide an additional service to those already offered.

October 17, 2012

Changed: 23/10/2012