Mobile termination rates - UKE

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Mobile termination rates

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2006-07-28

The position of the President of UKE regarding modification of the rates for terminating voice calls on the public mobile telephone network.

The Regulatory Policy for 2006-2007 adopted by the Council of Ministers on 4 July 2006 indicates the objectives that should be pursued by the President of UKE. The Policy stresses the importance of lowering the costs of mobile services and lists the priorities such as increasing the availability of mobile services, increasing mobile penetration and ensuring fair competition between mobile and fixed-line operators.

Taking into account the objectives indicated in the Regulatory Policy for 2006-2007 and in order to meet both mobile and fixed-line users’ expectations, the President of UKE performed a benchmarking exercise regarding the level of Mobile Termination Rates (MTR) in Poland and in other EU Member States.

At present, an average mobile termination rate in Poland amounts to € 0.1659 per minute. Having compared the level of MTRs in Poland and in the Member States, the President of UKE thinks that there is an urgent need to reduce the rates for terminating voice calls on the public mobile telephone networks of all three operators currently operating in the Polish market (Polska Telefonia Cyfrowa, PTK Centertel and Polkomtel).

The President of UKE anticipates a reduction of MTRs by 34.50% in 2006.

Table 1. Mobile Termination Rates in Poland following reductions in the end of 2006

 

 

MTR / T1

 

MTR / T2

 

MTR / T3

 

Current MTR

 

65 gr/min

 

48 gr/min

 

40 gr/min

 

MTR at the end of 2006

 

42.58 gr/min

 

31.44 gr/min

 

26.20 gr/min

 

Difference

 

22.42 gr/min

 

16.56 gr/min

 

13.80 gr/min

 

 

1 PLN = 100 groszy (monetary subunit, abbreviated to gr)

The President of UKE assumes that next reduction in the Polish MTRs will be possible to implement during the first quarter of 2007. An additional analysis of MTRs during the second half of 2006 should decide its level. However, it should be borne in mind that the objective of regulatory intervention of the President of UKE is to reduce MTRs in 2008 so as to reach the average of three EU Member States with the lowest MTR.

The President of UKE hopes that the application of the guidelines outlined in this position should make alternative operators’ decision to enter the mobile market easier, facilitate action aimed at using the existing telecommunications infrastructure and provide a strong impetus to extend their own infrastructure. This in turn should translate directly into increased competition in the Polish mobile market and, first of all, into reduced retail prices for both mobile to mobile (M2M) and fixed to mobile (F2M) calls, which should eventually lead to increased mobile penetration and availability of modern mobile services to the public.

 

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