Brussels, 17/04/2012 (Agence Europe) - The European Commission has opened an in-depth investigation into a proposal by the Estonian Competition Authority (ECA), which may have the effect of imposing some of the highest mobile termination rates in the whole of the European Union between mid-2012 and mid-2015. The Commission is concerned that the price calculation method proposed by ECA is not fully in line with the one laid out in EU rules for telecommunications matters and that it will lead to excessive tariffs over a long period, with ongoing harm to the consumer.
The Commission's 2009 recommendation on mobile termination rates recommends that effective rates be applied on the basis of costs between now and 1 January 2013. However, ECA is proposing tariffs of 3.83 euro cents per minute in the first half of 2013, which is considerably higher than the effective rate on the basis of the costs, which are in the region of one euro cent per minute. Additionally, ECA is proposing no longer to notify its rates to the Commission from mid-2013, in other words these rates will apply in Estonia whether or not they comply with EU legislation. This decision did not go down well with Neelie Kroes, the commissioner responsible for the digital agenda. She said: “We need a fair EU single telecoms market. We cannot allow a situation where certain operators are able to achieve an unfair advantage or overcharge consumers through excessive mobile termination rates. Consumers all over the Union should equally benefit from the lower rates agreed back in 2009.” The Commission's decision to open an in-depth investigation marks the start of a second phase by virtue of Article 7a of the Telecommunications Directive. ECA now has three months to work with the Commission and the Body of European Regulators for Electronic Communications (BEREC) to find a solution to the problem. (IL/transl.fl)