Determination of fixed-to-mobile termination prices
In compliance with paragraph 1 of article 16 of Law nº 91/97 and article 4 of Decree-Law nº 415/98, ICP is responsible for safeguarding the interests of users, guaranteeing a competitive market and contributing to its correct and appropriate development.
In this context, the definition of fixed-to-mobile termination prices to be implemented after the alteration in the traffic ownership regime on 31/09/2000, and an initial decrease in those same prices are important regulatory measures for the fulfilment of established public interest objectives, in that:
a. they represent the first step towards an evolution which aims the establishment of a more balanced relative price structure, namely as regards intra and inter-network traffic assessed within a global context of the interconnection market;
b. they contribute to the protection of consumer interests, by limiting or avoiding the development of barriers to the full use of network externalities, including the mobile networks, by end users, particularly the clients of the fixed networks;
c. they will promote conditions, which will encourage the development of a balanced competition between the fixed and mobile networks.
This, despite recognition that the sound competitive dynamics in the mobile market will lead to average levels of penetration and prices which favourably compare with EU practices.
In light of the objectives focused by ICP in the determination of fixed-to-mobile termination prices, the analysis carried out regarding current practices in some Member States, the research developed on this matter at European level and the price of intra-network mobile to mobile calls, ICP determined that maximum average termination prices of fixed to mobile calls be 47$50 per minute for calls with a duration of 100 seconds, with the per second tariff being applied, utmost, after the first minute. This consubstantiates a maximum reduction, which, depending on the operators, may reach -27% in comparison with 1999 prices.
The assessment of average prices should be made on the basis of the traffic pattern of the first quarter of 2000. It is noted that maximum reference prices are established in average terms, presuming an average duration of 99.2 seconds (average duration registered in the first quarter of 2000) and the inclusion of only invoiced traffic (e.g. traffic corresponding to the first five seconds of calls directed to voice mail which are free of charge are not included).
In the future, and still within the framework of a gradual definition of a more balanced relative price structure, the evolution of the various call termination prices, currently applied by the mobile networks, will be equated.
