Flat fee - changes to RIO

By determination of 8 June 2006, ANACOM approved the specification for changes to the reference interconnection offer (RIO) in order to introduce the flat rate, i.e., capacity-based interconnection. This determination includes the report on the previous consultation made to interested parties on the corresponding draft decision, approved by determination of 12 October 2005.
The measure now adopted demands concessionary PT Comunicações to integrate in RIO, in an autonomous section on the provision of capacity-based interconnection, a set of conditions for the provision of capacity-based interconnection, as well as information regarding the implementation, concerning contracts, procedures, prices and quality of service, as it is current practice with the remaining interconnection services.
Furthermore, the concessionary should submit to ANACOM within thirty days counting from the date of the determination a new version of RIO that includes the provision of capacity-based interconnection, for the verification of its compliance with the established minimum elements. This new version of RIO should respect the principles of transparency and non-discrimination. It should be presented and published 60 days before the entry into force of the provision of capacity-based interconnection. In any case, ANACOM may still intervene on the version of the offer that will be presented.
This determination follows the decision of 17 December 2004 concerning the setting of obligations in the wholesale markets of call origination and termination in the public telephone network at a fixed location to companies identified as holding significant market power (SMP) on those markets, which imposed to Grupo PT the obligation of providing a capacity-based interconnection model (interconnection flat rate), alternative to the time-based interconnection model (based on the length of switched calls).
The measure now adopted considers the evolution of the electronic communications market and the emergence of new competitive and innovative services in the retail market, which could not be fully replicated by the competitors of Grupo PT with the currently used time-based interconnection model.