Lower MTRs for mobile networks - UKE

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Lower MTRs for mobile networks


2012-12-17
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The President of the Office of Electronic Communications (UKE) has defined new regulatory obligations and Mobile Termination Rates (MTRs) for seven mobile operators. From 1 January 2013, reduced MTRs will be obligatory in settlements between the operators.

 

The decisions signed by the President of UKE, Magdalena Gaj, on 14 December 2012 (and delivered to all mobile operators on December 17, 2012), concern the designation of significant market power in the market for call termination on mobile networks (so-called "market 16") as well as imposing, maintaining and changing the regulatory obligations of the following operators:
  • Aero2 Sp. z o.o.
  • Centernet S.A.
  • Mobyland Sp. z o.o.
  • P4 Sp. z o.o.
  • Polkomtel Sp. z o.o.
  • Polska Telefonia Cyfrowa S.A.
  • Polska Telefonia Komórkowa Centertel Sp. z. o.o.
The decisions introduce new termination rates (MTR - Mobile Termination Rate) at a uniform rate for all mobile networks. In the first half of 2013, the operators will be allowed to use a transitional MTR equal to PLN 0.0826 per 1 minute of a voice call. However, from 1 July 2013 the target MTRs will enter into force for all mobile network operators at the level of PLN 0.0429 per 1 minute, based on an efficient operator’s model developed by the President of UKE. Depending on the mobile network operator, the target reduction of MTR in wholesale settlements will range from 65% to 85%.

According to the President of UKE, the implementation of new rules into the settlements between the operators, introduces the symmetry in charges for calls between mobile networks, which was awaited by the customers and which should translate into further decreases in retail prices for mobile calls.

The decisions of the President of UKE on introducing new MTRs were approved by the European Commission. In its comments on the new approach to the regulation of MTRs, the Commission recommended to introduce symmetric MTRs from the beginning of 2013 (i.e. in the same amount for all mobile operators) at a cost-efficient level. At the same time, after analysing the arguments submitted by the President of UKE, the Commission agreed to the application of a transitional rate in Poland and to the target MTR equal to PLN 0.0429 per minute, to apply from 1 July 2013, in order to enable Polish operators to prepare necessary changes.

At the same time the President of UKE emphasizes that SMP decisions are immediately enforceable. This means that the regulatory obligations imposed under these decisions and lower MTRs should be implemented by mobile operators by means of appropriate annexes to the agreements between them, immediately after the decisions are delivered and without the need for further intervention of the President of UKE, which was also reiterated by the European Commission in the course of works on the decisions setting the level of MTRs in the Polish market.

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    INTRODUCTION
    The President of the Office of Electronic Communications (President of UKE) is the national regulatory authority for the market of telecommunications and postal services. The President of UKE is also the specialised authority in the area of equipment conformity assessment, including telecommunications terminal equipment and radio equipment.

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    INTERNATIONAL ACTIVITY
    Here you can find information about the most import ant international events, significant for the development of telecommunications and postal markets In Poland and for the statutory activity of the Office of Electronic Communications.
    International activity of the President of UKE consists of, inter alia, cooperation with the European Commission, other EU institutions and Regulatory Authorities of EU Member State. It includes also the cooperation within organizations of which UKE is a member, i.e. the International Telecommunications Union (ITU), the Body for European Regulators of Electronic Communications (BEREC) and the European Committee for Postal Regulation (CERP).


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