Romania to lower MTR by 12.5% to EUR 0.84 per minute from May

Wednesday 7 March 2018 | 17:06 CET | News

Romanian telecommunications authority Ancom debated and agreed with the electronic communications industry to reduce mobile termination rates by 12.5 percent to EUR 0.84 per minute starting from 1 May. This is a transitory measure which applies until the completion of a new cost model which will take approximately 16 months to be created from its initiation process. The reduction is in line with the position of EC which criticised a previous Ancom decision to keep the interconnection tariffs for fixed and mobile telephony.

A new MTRs ceiling will result from a new cost model that Ancom will start developing in 2018. This new cost model is meant to reflect the efficient costs of providing mobile termination services.

Until the completion of the new cost model, Ancom deems an adequate way is to adopt the agreed transitory tariff. This is the average of the tariffs for the provision of these services in the EU member states that used a pure LRIC bottom-up model. Moreover, this type of cost model is the instrument recommended by the European Commission in regulating fixed and mobile call termination rates.

The solution chosen by Ancom has the advantage that it can be implemented faster than a possible update of the existing cost model. Ancom said it's an appropriate temporary measure until the setup of the rates resulting from a new pure LRIC cost model that includes the 4G /LTE technology.

By the end of 2018, Ancom will also review the pure LRIC model for determining the costs of fixed call termination services and will set new ceilings based on the current costing model which does not need substantial modification as it has already taken into account next-generation networks.

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