Brussels, 23/08/2012 (Agence Europe) - Mid-August, the European Commission expressed “serious doubts” about a new proposal from the Latvian telecoms regulator (SPRK) regarding fixed termination rates. According to the Commission, measures contained therein would negatively affect consumers in Latvia. Termination rates are the rates telecoms networks charge each other to deliver calls between networks, and each operator has market power over access to customers on its own network. These costs are ultimately included in call prices paid by consumers and businesses.
SPRK proposed to apply very high fixed termination rates of 0.29 eurocents per call and 0.26 eurocents per minute from 1 April 2013. The Commission considers these tariffs too high compared to those practised in other member states (e.g. 0.08 eurocents per minute in France), and are therefore not in line with the Commission's 2009 Termination Rates Recommendation under the EU telecoms rules (see EUROPE 9897). “The methodology applied by SPRK on fixed termination rates does not ensure that these rates are set on the basis of the costs of an efficient operator and therefore they result in rates which are too high by EU standards”, states the Commission.
In a letter addressed to SPRK, the Commission explains that the new rates set out in the proposal do not comply with the principles and objectives of EU telecoms rules which require member states to promote competition and the interests of consumers in the EU, as well as the development of the internal market. This is the second time that the Commission has used its new powers regarding national remedies under Article 7a of the telecoms directive in Latvia. The procedure must be concluded within three months. (OL/transl.jl)