Graph 5 shows a comparison between the average termination values resulting from benchmarks of the ERG, published every six months, the average values practiced in Portugal, and the 5th and 10th best prices in each of the periods considered. An estimation is also made of the evolution in average termination rates between July 2009 and January 2011, as well as the 5th and 10th best prices, on the basis of decisions already known or announced by various regulatory authorities in respect of terminations which regularly comprise the benchmarks (Shown in the graph as dashed).
Graph 5 - Evolution of average prices of termination in Europe
The following chart shows the average termination rates which will be applied in November 2011, for each of the countries included in the ERG benchmark 1.
Graph 6 - Average termination rates (estimated November 2011)
It should be noted, however, that several NRAs have not reached final decisions on this matter. Additionally, the Recommendation on Terminations, referenced above, urges NRAs to set prices based on the costs of an efficient operator, with the aim of significantly reducing the prices in question to levels in the range of 1.5 to 3 cents per minute. These two facts, taken together, will certainly mean that the estimate presented overstates the termination rates which will be charged in 2011.
Following the approval of its draft decision, OFCOM submitted the new termination rates for the United Kingdom to public consultation, in accordance with the Recommendation on Terminations. The glide-path proposed ends up at around 0.006 euros in 2014/2015. In June 2011, the price proposed is around 0.03 euros, higher than shown in Graph 6. Additionally, the Turkish Regulator decided to cut termination rates to values of around 0.015 euros in April 2010. More recently the Dutch regulator has also announced new termination rates. In September 2011 prices of 0.030 euros must be applied. The previous graph has been modified compared to the version included in the draft decision in order to reflect the new decisions and draft decisions notified to the European Commission, subsequent to the draft decision's publication.
1 This graph includes the values of the countries for which rates have already been announced for November 2011, whereas for the other countries the values used are the last known before this date.
