Telecom regulator axes termination rates in Romania

The telecom regulator in Romania announced that it will slash termination rates for mobile and landline telephony in Romania by more than 30 percent during the interval March- September this year.

 Termination rates are the charges which one telecommunications operator charges to another for terminating calls on its network.

 Termination rates will be reduced in two stages.

 “The sixth operators of mobile telephony with significant power on the market- – Cosmote, Orange, RCS&RDS, Romtelecom, Telemobil and Vodafone- will practice starting with March 1 a maximum tariff for termination rates of 4.05 eurocents per minute. The second stage for reducing termination rates in mobile telephony networks will take place on September 1, 2012, when the maximum rates will be 3.07 eurocents per minute,” goes the ANCOM announcement.

 The maximum termination tariffs that should be practiced by the 51 providers of fixed telephony will drop on March 1 down to 0.82 eurocents per minute starting with March 1, 2012. In the second stage, which starts on July 1, 2012, termination rates will be 0.67 eurocents per minute.

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The telecommunication market posted a value of EUR 1.7 billion in the first half of 2011. Revenues from termination rates obtained by mobile operators during this time reached EUR 0.2 billion, which represents 11.7 percent of the value of the market. Revenues obtained by fixed telephony operators amounted to EUR 0.05 billion, which represents 2.7 percent of the telecom market value.

Otilia Haraga