Lower termination rates - UKE

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Lower termination rates

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2007-04-27

Following the completion of administrative proceedings, the President of the Polish National Regulatory Authority for electronic communications (further referred to as UKE) issued on 26 April 2007 decisions on voice call termination rates in the public mobile telephone network to be applied by the following SMP operators: the Polkomtel S.A. Company, the Polska Telefonia Komórkowa Centertel Sp. z o.o. Company, the Polska Telefonia Cyfrowa Sp. z o.o. Company. 

  

New MTR

Under the above mentioned decisions the President of UKE imposed the obligation to adjust the level of voice call termination rates in the public mobile telephone networks (MTR) to the PLN groszy (PLN 1 = groszy 100 - monetary subunit) 40.00 per minute (flat rate regardless of the day and period of the day) with effect from 1 May 2007.

According to the glide-path specified in the decision the target MTR should be reduced to the level of PLN groszy 21.62 per minute with effect from 1 May 2010. Operators have also been obliged to provide the President of UKE on the annual an basis with justification on the applied MTR with relation to the costs incurred, using the data for the last accounting year and not later than within 100 days following the end of this year.

The decisions of the President of UKE shall be immediately enforceable.

   

The glide-path for MTR

European Union regulatory practice proves that most NRAs aim at decreasing MTR through implementing usually a three-year glide-path.  It should be also noted that the annual decrease of MTR is to occur in linear manner (the same change each year in the rate in terms of amount or percentage). The President of UKE has carried out an analysis of changes in MTR in the EU Member States, taking into account the linear character of changes introduced by the NRAs and has decided the following glide-path for MTR with regard to the provision of services of voice call termination in the mobile networks by the Polkomtel S.A. Company, the Polska Telefonia Komórkowa Centertel Sp. z o.o. Company, the Polska Telefonia Cyfrowa Sp. z o.o. Company.

  

 

From 1 May 2007

From 1 May 2008

From 1 May 2009

From 1 May 2010

MTR (groszy/min.)

40.00

33.87

27.75

21.62

MTR

(eurocent /min.)

10.56

8.94

7.33

5.71

annual change

-

-15.31%

-18.08%

-22.07%

  


The policy of the President of UKE with regard to MTR intends to bring the level of mobile termination rates down to the average of three EU member states with the lowest MTR. As a consequence, the President of UKE set the average mobile termination rate at eurocent 5.71 per minute which is equal to PLN groszy 21.62 per minute by using benchmark of the three EU countries (Sweden, Finland, Cyprus) with the lowest MTR, according to the data from the 12th implementation report. Moreover, the President of UKE will analyze on an annual basis the trends with regard to changes in MTR in the European countries as well as changes in the cost structure of the mobile call termination service and in case of significant discrepancies, appropriate steps will be taken to adjust the MTR applicable in Poland to the trends occurring in the European Union Member States.

  

   

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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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    CONTACT
    Contact details representatives of the Office of Electronic Communications (UKE).
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