ANACOM orders further reduction of 39% in termination rates

By ANACOM determination, the wholesale prices charged by operators for terminating calls on their fixed networks are to be cut by 39%. According to ANACOM's draft decision, rates are to be fixed at 0.068 cents per minute; this follows a reduction of approximately 80% already enacted in 2013.

With this draft decision, conditions will be created which will allow operators to pass on this tariff reduction in the prices they charge end-users.

The new termination price of 0.068 cents per minute, for all operators, is oriented to the costs of an efficient operator and results from the adoption of a new cost model defined by ANACOM, as provided for in the European Commission's Recommendation on Terminations of July 2009, which set out to reduce terminations in member countries.

In 2013, rates were established based on an average of the rates of the various European countries that have already implemented a costing model with similar characteristics to the one now being developed.

The new termination rates and the cost model are under public consultation until 26 August and will subsequently be notified to the European Commission, after which, where the draft decision is maintained, it will come into force 10 working days after adoption of the final decisions.