Regulator approves Romtelecom's accounting separation

Romanian telecom regulator Ancom has finalised the decision on the approval of the regulation on the elaboration by Romtelecom of the accounting separation within the internal cost accounting system. As a provider designated as having significant power on several markets, Romtelecom has the obligation to keep separate accounts to ensure a high level of transparency concerning its costs and tariffs. The regulation establishes the way Romtelecom will keep the separate accounting for those activities that are related to interconnection with, and access to, its own network or the associated infrastructure, as well as to the activities related to the provision services in the retail market. Separate accounting will provide information on Romtelecom costs and tariffs on the wholesale markets, on the level of the internal transfer prices, as well as on the possible occurrence of competition deficiencies related to cross-subsidization or to the charging of predatory pricing. Ancom and the competitors will thus be certain that the operator offers equivalent conditions for both its own retail business and in relation with the other operators. As part of the calculation methodology, Romtelecom will provide the regulator with additional information on the adoption of the new technologies and on the allocation of the due costs, revenues and capital engaged. Separate financial statements will be submitted to Ancom and published on the operator's webpage, on a yearly basis, within 6 months after the closure of the financial exercise they relate to. This decision will enter into force when Ancom notifies the operator. The separate financial statements for 2011 will be drawn up based on the new regulation.