The Electronic and Postal Communications Authority recommends the gradual reduction of SMS termination tariffs starting from next October when they are expected to drop to 2.4 lek/SMS before reaching 1.44 lek/ SMS in March 2012 and 0.86 lek in September 2012
TIRANA, July 11 – Albania’s SMS tariffs, currently estimated at rates nearly 7 times higher than their cost, will undergo considerable reductions in the next two years as SMS termination tariffs drop to 0.58 lek/SMS by September 2013, down from 4 lek/SMS VAT excluded currently. The conclusion comes from an analysis conducted by the Electronic and Postal Communications Authority (AKEP) which recommends the gradual reduction of SMS termination tariffs starting from next October when they are expected to drop to 2.4 lek/SMS before reaching 1.44 lek/ SMS in March 2012 and 0.86 lek in September 2012.
AKEP says the reduction in SMS termination tariffs for all four mobile operators will promote competition and reduce tariffs for mobile users.
“Currently, standard SMS tariffs in Albania are on par with regional countries, except for Montenegro and Croatia where SMS tariffs are considerably lower. Retail SMS tariffs in Albania are currently at an average of 12 lek/SMS VAT excluded. However, tariffs within groups are sometimes as low as 1 lek/SMS, resulting in an average revenue of 4 to 7 lek/SMS for mobile operators,” says AKEP.
Two months ago, Prime Minister Sali Berisha called on AKEP to regulate the SMS tariffs which according to him still remain high.
“In fact their total cost remains expensive, therefore we should do everything for their regulation, and include in AKEP’s agenda the SMS tariff regulations in the same way as impulses,” said Berisha during a government meeting, describing the SMS communication in Albania as the fastest and most suitable.
A recent report by the Electronic Communications Authority says the number of SMSs fell by 16 percent in 2010 compared to 2009 because of the ongoing high tariffs, criticized even by government.
Starting from this year, termination tariffs for the four mobile operators in Albania, will also gradually start reducing before being halved and become equal for all four companies by September 2015, the Electronic and Postal Communications Authority (AKEP) has decided after closing public consultations.
According to the AKEP decision aimed at providing cost oriented tariffs for operators with significant market power, the termination tariffs, which are fees mobile phone companies charge other carriers to terminate calls on their networks, will lower to 8.85 lek/minute for the two biggest operators AMC and Vodafone Albania, down from 10.5 lek/min currently starting from March 1, 2011. Meanwhile, termination tariffs for third operator Eagle Mobile will drop to 10.89 lek/min, from 12.92 lek/min currently and for newly launched Albanian-owned Plus Communication to 15.92 from 18.9 lek/min currently.
Termination tariffs for the three operators considered as having significant market power, AMC, Vodafone Albania and Eagle Mobile will be reduced to 4.57 lek/min by September 2014, down from 10.5 lek/min currently.
According to AKEP, the number of mobile subscribers in 2010 increased by 11 percent to 4.5 million for a population of around 3.5 million, a figure which shows more than 1/3 of subscribers have at least two SIM cards.
