Determination of costs for the settlement of fees due for engaging in the activity of electronic communications networks and services provider, in April 2011

In April 2011, after the closing of accounts for the 2010 financial year, the actual administrative costs related to the regulation activity, relevant for the calculation of the fee referred in paragraph 1b) of article 105 of the ECL, were determined, which makes it possible to replace the figures of the 2010 budget, in the calculation of the moving average of the last three years, by those year’s actual figures. Likewise, as regards the moving average of the last 5 years for the provisions resulting from legal actions filed on regulatory matters, the amount stated in the 2010 budget (4,000,000 €) was replaced by the amount that was actually provisioned during that year (0 €). Accordingly, the calculation of the amount of the annual fee due for engaging in the activity of electronic communications networks and services provider presents the corrections shown in Table 2.

Unit: Euros

Table 3 breaks down the calculation of the moving average of the provisions used in Table 2.

Note: the correction to which these provisions were subject results from the facts that proceedings launched by Radiomovel (9.524.920 €) have terminated and that the value of the provision for proceedings launched by Vodafone was re-classified in 3.575.579 €, as it had been incorrectly considered as a regulation cost.
Unit: Euros

Pursuant to paragraph 5 of article 105 of the ECL, one of purposes of the annual report on administrative costs and on the total sum resulting from the collection of fees referred to in points a) to d) of paragraph 1, is to “perform the appropriate adjustments in respect of the difference between the total sum of fees and administrative costs”.

Having regard to actual administrative costs associated to the regulation activity, relevant for the calculation of the fee referred to in paragraph 1b) of article 105 of the ECL (28.466.608 €) and those previously considered with the budget value (31.526.163 €), for 2010, there is a difference of 3.059.555 €.

Therefore, the value of the t2 contribution rate is thus 0,5209%, instead of the previously set 0,5770%, according to the following calculations.

2010 Financial Year
 
Formula: t2 = (C-t1n1)/P2;
 
C= Total regulation costs as regards the activity of electronic communications networks and services provider, for 2010 = 28.466.608 €
 
t1 = Fee due by bodies of step 1 (Relevant Income < = 1.500.000€) = 2.500€;
 
n1 = number of bodies of step 1=21
 
P1 = Total of relevant income of bodies of step 1 in 2009= 10.226.955€
 
P2 = Total of relevant income of bodies of step 2 in 2009 = 5.454.339.612€
 
t1n1= 2.500€ x 21 = 52.500€;
 
t2 = Fee due by bodies of step 2 (Relevant Income >1.500.000€) =  (28.466.608€ - 52.500€)/ 5.454.339.612€ = 0,5209%

The value of fees to be settled results from applying the 0,5209% rate to the relevant income of each operator in step 2.  However, as 2010 is the 2nd year of the transitional period, a factor of 0,667 is applied to the calculated value, pursuant to clause 6 of the Administrative Rule mentioned above.

Considering the application of the transitional period, as mentioned in point 2.4, and taking into account the cancellation of provisions for the action lodged by Radiomovel and the correction of the classification of Vodafone’s action, the final figure of 18.868.842 € was determined for the fee concerning paragraph 1b) of article 105 of the ECL. Since the amount settled in 2010, based on the inclusion of the amounts budgeted for that year, was 20.909.287 € – that is 2.040.445 € in excess – the application of paragraph 5 of article 105 of the ECL results in the need to adjust the value of the fees in question, which will generate the return of the amounts collected in excess, in proportion to the relevant income used for the purpose of calculating the fees already settled.