ANCOM

22.08.2003

 

The National Regulatory Authority for Communications (ANRC) launched for public consultations the following projects: Decision for the approval of regulation regarding the realization of „top-down” long run incremental cost calculation by Mobifon S.A. and Decision for the approval of regulation regarding the realization of „top-down” long run incremental cost calculation by Orange Romania S.A.

 

The two projects comprise the regulations based on which S.C. Mobifon S.A. and S.C. Orange Romania S.A shall elaborate a LRIC cost calculation model (Long Run Incremental Cost), which should allow the cost orientation of the tariffs charged by the two companies for the interconnection services for call termination at mobile points, the two companies being designated as having significant power on these services’ market.

 

For the calculation of the tariffs afferent to these services, the calculation models will use the accounting statements of the two operators. The cost calculation models elaborated by S.C. Mobifon S.A. and S.C. Orange Romania S.A shall be based on information on the recent performances of the operators, making possible the elimination of all the costs related to structural and operational inefficiencies as well as the long term evaluation of these costs.

 

At its turn, ANRC, in order to determine the tariffs the two operators have the obligation to orient on costs, will realize a second LRIC cost calculation model, where the information introduced will take into account the practices and the performances of the efficient operators on the international markets. The calculation models elaborated by the operators shall have to be flexible enough to allow the comparison of the data resulted from the application of the two models. The models shall be submitted to a reconciliation process meant to ensure the correctness determination of the companies’ costs and the transparency of the tariffs setting out model.

 

The regulations comprise, among others, the description and the level of detail of the calculation model imposed to the operators, the definition of the services analyzed within the model and the principles for determining the current costs afferent to the fixed assets.

The decisions stipulate the S.C. Mobifon S.A. and S.C. Orange Romania S.A. obligation to send to ANRC until March 31, 2003 the documentation necessary for the cost calculation model, which shall be developed and implemented until June 30, 2004.

 

The projects are available on ANRC Internet page. The public consultation process for both projects ends on September 20, 2003.

Those interested can forward their comments at fax no.: 307 54 02 or at the address: consultare@anrc.ro