The Bulgarian regulator reflected the recommendations of the European Commission after the market analyses notification that has been carried out

 

 

The Communications Regulation Commission (CRC) took into consideration the recommendations of the European Commission (EC) after the notification of the three market analyses has been carried out as it decided to introduce an immediate symmetry between the wholesale rates from fixed to mobile and from mobile to mobile network; approved more accelerated glide path for wholesale calls termination rates reduction in mobile and fixed networks; took into account the note for specifying the cost-oriented prices obligation of the operators.

 

The introduction of the symmetry between the rates from fixed to mobile and from mobile to mobile network will lead to prices reduction from fixed to mobile network respectively by 14% for peak hours (0.25 BGN) and 24% for off peak hours (0.19 BGN).

 

The new glide path for traffic termination rates reduction in mobile networks foresees the rates to be reduced respectively from 0.25 BGN to 0.23 BGN for peak hours (8%) and from 0.19 BGN to 0.17 BGN for off peak hours (10.5%) as of 01.07.2009.

 

From the beginning of 2010 a new reduction of 11% for peak hours and 12% for off peak hours is imposed, respectively from 0.23 BGN to 0.205 BGN and from 0.17 BGN to 0.15 BGN.

 

The last reduction of prices is foreseen as of 1^-st July 2010 when the prices will be decreased by 36.6% more for peak and 27% for off peak hours and will reach levels respectively 0.13 BGN and 0.11 BGN.

 

According to the type of the traffic and call origination, the total reduction of the calls termination rates in mobile networks will be between 42% and 56%.

 

The CRC determined and the final wholesale termination rates in fixed networks with which prices reduction in double segment between 62% and 67% is determined, while in single, metro and local – between 17% and 60%.

 

In determination of the concrete steps for termination rates reduction the influence of the global financial crisis has been taken into account, as well as the increasing market risk for the investments as a whole and the necessity an opportunity for investment in new technologies to be given to the operators.

 

The CRC took into consideration and the comments of the EC for introduction of an obligation for cost-oriented prices for the mobile and fixed operators and in elaboration of the cost accounting system will propose the method LRIC to be used – for estimation of marginal costs in long term period. The current step is synchronous with the future recommendation of the EC for the termination rates.