05 Mar by Edith

AL: Competition: Postpaid tariffs to be reviewed

Competition: Postpaid tariffs to be reviewed

The mobile communication market is undergoing a considerable development; with companies reporting profits over 50% and a vast gamma of products.

 

The actual number of subscribers is about the 3 million, marking a penetration of 100%. Despite these developments, the tariffs of the postpaid programs have not been reduced like the prepaid ones. Prepaid subscribers benefit a lot of low-cost offers, free text messages and free airtime while the contractual subscribers continue to pay the same old high tariffs. This fact has been also confirmed by the Authority of Electronic and Post Communication (AEPC) in its “Mobile market analysis: wholesale termination markets and retail mobile market”. AEPC says that there is no law or methodology that adjusts these tariffs.

 

Meantime, the Competition Authority, studying the document prepared by the AEPC, recommended the reduction of the contractual tariffs. In its decision, the CA asks the AEPC to implement the “Tariffs Methodology” not only for the prepaid but also for the postpaid service, SMS-es and other services. For many years, the CA has been through several legal battles with the mobile operators, like the one for the heavy fines which has not been yet solved by the tribunal. The AEPC and AC have agreed to exchange info and the AC has asked all the data necessary to perform an investigation in case the competition rules are violated. Even though there are 3 active operators in our market, there is still some kind of centralization. Meantime, the government is carefully planning the entrance of the 4th mobile operator.

 

According to the AEPC, in 2008 the profits of the mobile operators varied from 55 to 70 percent but there is a drop in 2009. Meantime, the SMS tariffs have been cut by 40% in the past 3 years. However, the AEPC says that the adjustment of the mobile termination tariffs must be complete within August 2010.

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