Fixed termination rates charged by telecoms operators in Lithuania are among the highest in the EU. Significant reductions are needed to lower them to efficient cost levels in the interest of Lithuanian consumers, notes the European Commission in a letter sent to the Lithuanian telecoms regulator, Rysiu reguliavimo tarnyba (RRT), on 24 November. It invites the RRT to impose on all telecoms operators effective price control and access regulation with respect to their fixed termination services (the wholesale prices charged by fixed network operators for the termination of calls on their respective networks).

Under the strategy defined in the Commission’s recommendation (2009/396/EC), fixed termination rates should be brought down in all member states to the level of the cost of an efficient operator by 31 December 2012.

The RRT proposes to maintain existing regulatory obligations, such as open access, non-discrimination, transparency and accounting separation for the incumbent operator TEO IT, AB. On the incumbent’s prices, the RRT proposes to reduce fixed termination rates for peak and off-peak hours and call set-up fees at both the local and national level, at the start of each of the next three years. However, its cost model differs from the model proposed by the Commission’s recommendation, which would lead to even higher rates than those foreseen in the RRT’s previous proposal. For other fixed network operators, the regulator proposes to apply a more lenient regime. The access obligation for other fixed network operators is also less strict than that applying to TEO.

The Commission urges the RRT to impose steeper reductions leading to rates closer to the EU average, thereby coming closer to the level of an efficient operator.

The executive also notes that an access obligation is unilateral and unconditional and should in principle not be made subject to conditions offered on markets other than the relevant market, in this case another termination market. It invites the RRT to review the scope of the access obligation on TEO and to adjust the wording taking account of its observations.

The Commission also invited the RRT to extend the scope of the access obligation on other operators to ensure that termination services are provided on fair and equal conditions. Alternatively, the RRT may consider imposing a non-discrimination and transparency obligation on other operators.

FTRs charged by telecoms operators in Lithuania are among the highest in the EU