Mobile regulator recommends unified tariffs to end discrimination

“The application of higher tariffs in calls to other mobile networks and fixed-line operators as well as the application of higher discounts on on-net calls are considered abusive and anti-competitive tariffs,” says the mobile market regulator.
TIRANA, Nov. 18 – With on-net calls accounting for the overwhelming majority of 93 percent of mobile phone calls, the Electronic Communication Authority has recommended that all four mobile phone operators should charge unified tariffs for both on-net and off-net calls to bring an end to discrimination for the smaller operators who claim the differentiated prices allow the bigger operators to keep their market shares.
In a report analyzing the mobile phone market in Albania, AKEP, which is responsible for regulating this market, considers the differentiated tariffs as abusive and damaging competition.
“The application of higher tariffs in calls to other mobile networks and fixed-line operators as well as the application of higher discounts on on-net calls are considered abusive and anti-competitive tariffs,” says AKEP.
The regulator is also concerned over promotional packages mobile operators offer whose tariffs are up to 10 times higher compared to Average Revenue Per Minute (ARPM). “At 29-39 lek/minute (Euro 0.2 to 0.27), the tariffs in standard pre-paid packages, are almost ten times higher than the average ARPM at 3.75 lek/ minute (Euro 0.026) and 1.5 to 4 times higher compared to standard tariffs in regional countries,” says the regulator.
AKEP says failure by operators to meet obligations on non-discriminating on-net and off-net tariffs, discounts, SMS will be considered abusive behaviour with their dominating position.
The on-net traffic accounted for 93 percent of mobile phone calls in 2013, down only 1 percent compared to 2011.
The Electronic and Postal Communication Authority, AKEP, has also decided to apply new cuts to mobile termination tariffs is expected to bring another decrease in mobile tariffs in the next two years. “By January 2016, mobile termination tariffs for the four operators will reach 1.48 lek/minute which is a decrease from 68 to 83 percent compared to the current termination rates.”
Mobile companies’ revenues suffered a double digit shrink in 2013 fuelled by ongoing slowdown in mobile tariffs which the Electronic and Postal Communications Authority says have now dropped to EU and regional countries levels.
An annual report issued by AKEP shows that after a recovery in 2012, mobile companies posted 37 billion lek (Euro 261 million) in revenues, a 12 percent decline compared to 2012, suffering their lowest level since a decade ago when only two mobile companies operated in Albania.
The number of active mobile users, defined as those that have made or received at least a call or SMS in the last three months, rose to 3.7 million in 2013 with a penetration rate of 130 percent up from 3.5 million in 2012, says the Electronic and Postal Communications Authority in its annual report. The number of mobile subscribers with 3G access almost doubled to 1.2 million in 2013 after a third operator made the service available.
Meanwhile, the number of fixed telephony subscribers dropped by 10 percent to around 281,000 at the end of 2013.
“Mobile phone rates continued their downward trend even in 2013, dropping by 35 percent for medium user baskets and by 28 percent for the high usage basket, standing at the average rate of EU and regional countries,” says AKEP.
Albanians spend an average of 5,836 lek (Euro 42) on mobile phone services in 2013, down from 7,132 lek in 2012 and 8,594 lek in 2010.
Mobile subscribers also continued being active on number portability, with an estimated 101,622 mobile numbers ported in 2013 and 4,875 fixed telephony numbers.
Four mobile companies operate in Albania, Vodafone, AMC, Eagle Mobile and Plus Communication, three of which already offer 3G services.