ANACOM reduces fixed termination rates on 1 October creating conditions which enable cuts in consumer prices


The European Commission (EC) has welcomed ANACOM's draft decision on a reduction in fixed termination rates and supports the decision's entry into force on 1 October, the date proposed by the regulator. The Commission believes that "it is urgent to act to protect consumer interests, so that consumers can take advantage of cost-oriented termination rates."

Termination rates are the prices which fixed network operators charge for terminating calls on their networks. In accordance with the EC's recommendation, these rates must be cost oriented. With the implementation of ANACOM's measure, termination rates will be cut, on average, by over 80%, to 0.1114 eurocents per minute, leading to lower prices for consumers.

The only aspect of ANACOM's draft decision that has given the Commission cause for concern is that it does not immediately enact a general requirement for access to IP interconnection. In the draft decision notified to the Commission, ANACOM proposed that it was necessary to have technical conditions for access and interconnection in place before moving on to a general obligation of interconnection. Since the Commission has required the immediate definition of an access obligation, ANACOM intends to revise its draft decision in accordance with European Commission guidance.

Portugal is one of the first European countries to adopt the Commission's recommendation on the reduction of fixed termination rates.