ICP introduces changes to fixed-mobile connections

/ Updated on 24.01.2008

As from 1 October, telecommunication services clients can establish fixed-mobile connections by means of indirect access (10xy) providers to the Fixed Telephone Service. At the same time, a maximum price was introduced and is to be practised in the interconnection market for calls of this nature. Furthermore, this price does not constitute a tariff system for the final consumer.

With the eligibility of fixed-mobile connections in indirect access determined by ICP, a new competitive front has been introduced in the sector in the call-by-call and provider pre-selection modalities. (Fixed Telephony Service Liberalised on January 1) This change is made possible by the coming into effect of the new property regime for fixed-mobile traffic, which grants the network originating the call, and therefore the fixed network, the power to set consumer prices for these types of calls.

It should be noted that up until the 30th of September , the destination mobile operator had the power to set the price, a regime rooted in an historical context for the incentive of quick mobile network penetration and which has since ceased to be justifiable.

Maximum Price

At the same time, 1 October, the maximum price set by ICP for the mobile component of fixed-mobile calls came into effect. The amount of PTE 47,50 per minute for the termination of a call lasting 100 seconds, with billing per second starting at a maximum as from the first minute, is not a tariff system for the final consumer, but for the interconnection market i.e. among the operators. When compared to the average prices practised by the three operators in 1999, this figure corresponds to a drop of -27%.

The amount set aims at preventing the bottle-necking verified in fixed-mobile connections, thus opening up the way for the creation of a more balanced price structure. These measures contribute toward avoiding possible distortions in the market, introduced by tariff policies and eliminate the penalties fixed network users are faced with when making fixed-mobile calls.


See also: