The European Commission (EC) has serious concerns about the proposal of the Social Services Regulations Commission (SSRC) on fixed termination rates, because they can negatively affect Latvian consumers.

The EC has delayed this proposal and is now performing an in-depth evaluation.

Termination rates are the charges which one telecommunications operator charges to another for terminating calls on its network. These costs are included in the costs for conversations, they are charged for both the consumer and the company.

The SSRC planned to introduce a very high, according to the EC, termination rates starting from April 1, 2013 – 0.29 EUR for connection and a rate of 0.26 EUR per minute. Tariffs are generally much lower in other EU member countries. For example, tariffs in France are 0.08 EUR per minute.

According to the EC, the rates that are planned in Latvia do not adhere to the EC’s 2009 guidelines on termination rates. The proposal of the SSRC does not guarantee that rates are set based on effective operator costs. Therefore, they appear to be inappropriately high for EU regulations. «I am fully resolved to make sure that termination rates in all EU countries are reduced without hesitation down to effective operator costs,»- says Digital Affairs Commissioner Neelie Kroes.

On Tuesday, August 14, the EC sent the SSRC a letter, explaining that the initiated rates do not comply with EU telecommunications regulations and goals that provide for member countries to improve competitiveness and protection of interests of consumers in the EU and the development of domestic markets.

This is the second time when the EC uses its authority in relation to Latvia’s regulative measures. The SSRC tried initiating termination rates in March 2011 as well. These rates also did not comply with EC guidelines of 2009. However, at the time the EC did not have the authority to stop the initiated measures. Even then the commission understood the necessity of introducing specific regulation measures for different telecommunication rates that would adhere to EC guidelines of 2009.

The EC now plans to redevelop SSRC’s proposal on new tariffs in cooperation with the Body of European Regulators for Electronic Communications (BEREC) within three months to make sure new measures comply with specific EC guidelines.

Ref: 102.109.109.3058