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Romania: ANCOM reduces the regulations for fixed telephony on wholesale and retail markets

ANCOM has discussed in today’s Consultative Council meeting the conclusions of the review of the retail market of services of access at fixed locations, respectively the wholesale markets of services of call origination at fixed locations and services of call switched transit in the public telephone networks. The relevant markets in the electronic communications sector and implicitly the regulatory measures in force are periodically reviewed by the Authority, following complex market analyses mainly aimed at reassessing the competitive environment in the respective markets.

The ANCOM analysis showed that the retail market of the services of access at fixed locations in the public telephone networks, respectively the wholesale market of services of call origination at fixed locations tend towards effective competition in the analysis’ time horizon. Consequently, the Authority is deregulating these markets, setting a one-year transitory period until the withdrawal of all the obligations previously imposed on Romtelecom. On the retail markets of the services of access at fixed locations, Romtelecom will no longer have the obligation to offer its subscribers the possibility to use the services of any provider of publicly available telephone services with which Romtelecom is interconnected, by means of the carrier selection/pre-selection procedures, nor the obligation to not condition the provision of access services at fixed locations by the end-users’ consent to receive additional facilities, with no relation to the required service. As well, after the expiry of the transitory period, the wholesale market of services of call origination at fixed locationsin the public telephone networks, Romtelecom will no longer have the obligations of transparency, non-discrimination, supply of certain services and granting of access to certain facilities, and price control.
The competitive environment on the wholesale market of services of call switched transit in the public telephone networks is however different. The Authority’s analysis shows that the existing market entry barriers are still high and that it is unlikely that the alternative operators significantly improve their position in the market in the analysis’ time horizon, given the substantial territory coverage of Romtelecom’s network and the large amount of direct interconnection agreements which Romtelecom concluded with both alternative operators of fixed public networks and operators of mobile public networks. In keeping with the held market share and the analysed structural factors, it was concluded that Romtelecom remains a provider with significant market power and therefore the obligations of transparency, non-discrimination, supply of certain services and access to specific network elements and associated infrastructure, as well as tariff cost-orientation are further maintained on this operator.
The maximum tariff which Romtelecom will be able to charge for the provision of interconnection in view of call switched national transit in the public telephone networks will be set in the following period by means of a cost calculation model. Until such tariff is set for the call switched transit in the public telephone networks, based on a long-run incremental cost calculation model, the maximum tariff Romtelecom can charge for this service is maintained at the current level, namely 0.05 Eurocents/minute for switched transit – simple transit and 0.16 Eurocents/minute for switched transit – double transit.
The draft measures on determining the tariffs for certain wholesale electronic communications services, based on certain cost calculation models, are subject to another public consultation whose outcomes will be announced when the consultation is over.
Once the national consultation completed, in line with the legal provisions in force, ANCOM is to notify to the European Commission, to the Body of European Regulators for Electronic Communications (BEREC) and to the national regulatory authorities from the other Member States of the European Union the proposed set of identification, analysis and regulatory measures, alongside the reasons grounding these measures. The European Commission, BEREC and the other regulatory authorities will then have one month at their disposal to transmit ANCOM their comments and suggestions.

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