ANACOM cuts down on interconnection prices by 5%


ANACOM - National Communications Authority has decided to cut down by 5% on interconnection prices for this year, having requested of PT Comunicações that it introduces new prices to the reference interconnection offer for 2006, within a 10-day deadline.

The new interconnection prices decided by the regulatory authority, which take effect as from 1 January this year, are lower than those put forward by PTC, as in the view of ANACOM the figures submitted by the incumbent do not comply with the principle of cost orientation of prices. In addition to the fall in prices of the call termination and origination services, the tariffs defined by the regulatory authority are characterized by a reduction of four Euro cents in the call set-up value for each interconnection level (changing to 0.57 Euro cents for interconnection at local level, to 0.66 Euro cents for single tandem interconnection and to 0.76 Euro cents for double tandem interconnection), which apply to the call termination and origination services.

Level

Termination Origination
Price per minute Price per minute
Peak Off-Peak Peak Off-Peak
Local 0.64 0.41 0.64 0.41
Simple Tandem 0.93 0.58 0.93 0.58
Double Tandem 1.44 0.88 1.44 0.88

Price per minute, based on a 3-minute call; figures in Euro cents, VAT not included

Ceiling prices for invoicing, collection and bad debt liability service are now set at 3.080 Euro cents per call, for shared cost call services, where the cost to be borne by the caller does not exceed Local PT; and at 3.44 Euro cents, per call, as regards the remaining non-free special services provided by operators, namely customer support services, information services, universal access services, and shared cost call services, where the user bears a cost higher than that of a local call made in the scope of the universal service.

The ceiling price for pre-selection activation is reduced from 5.6 euros to 5.1 euros, and the ceiling price for porting per individual number is reduced from 15 euros to 13.6 euros. Calls shall be charged per second from the first second, the peak hours applying between 9 a.m. and 7 p.m. and off-peak hours applying in the remaining period. The fall in interconnection prices now determined is in line with the downwards trend which has taken place since 2001. In fact, since 2001, interconnection prices have been decreasing continuously, bringing about up to this moment a cumulative decline by 42%.This fall in prices enables the improvement of competitive conditions in the sector, which results in benefits for consumers, as this leads to the provision of more favourable offers to the end-user.


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