Price analysis for F2M calls - UKE

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Price analysis for F2M calls

Price analysis for fixed to mobile calls provided by TP and its largest fixed-line competitors.

 

Within the framework of its activities the President of the Office of Electronic Communications (UKE) monitors developments in prices for services provided to the clients of fixed-line telephony. The aim of the analysis is to examine trends and present changes in prices for calls made by fixed-line subscribers to mobile networks (so called F2M calls) between 2005 and 2007. To this end prices for F2M calls of the following fixed-line operators were compared:

  • Telekomunikacja Polska S.A.;
  • Tele2 Polska Sp. z o.o.;
  • Netia S.A.;
  • Telefonia Dialog S.A.

   

Mobile termination rates (MTRs)

In April 2007, the President of the Office of Electronic Communications issued decisions on the glide path for mobile termination rates applied in the public mobile telephone networks of the following operators: Polkomtel S.A., PTK Centertel Sp. z o.o. and PTC Sp. z o.o. The President of UKE imposed the obligation to adapt as of 1 May 2007 the mobile termination rate to the level of PLN 0.40 per minute irrespective of the time of the day and week (flat interconnection rate). According to the established glide path, the MTR will be eventually reduced to PLN 0.2162 per minute by 1 May 2010.

   

Average F2M prices

Prices for F2M calls in 2007 have decreased compared to 2005. The reduction, depending on the charging period, amounted to 38-51% for peak and 35-52% for off-peak calls.

The average price for one minute F2M call calculated by comparing the revenue from this service and traffic volume for 2007 was lower by slightly more than 5% compared to the average price for 2005. The Regulator had a big impact on the reduction in the price level of F2M calls within the analysed period due to its decision of July 2007 on the maximum retail tariffs for one minute F2M call originated by TP S.A.’s subscribers.

According to this decision TP S.A. must not apply higher retail tariffs than those specified in the decision. In addition, the introduction of wholesale line rental (WLR) had an impact on the level of charges for F2M calls. Within the examined period two of the companies included in the analysis were using WLR, namely Tele2 Polska Sp. z o.o. and Telefonia Dialog S.A.

In addition to a noticeable reduction in prices for F2M calls significant simplifications in charging were introduced by alternative operators in 2007 consisting in:

  • a single rate applied irrespective of the time of the day and week or two rates within 24 hours at the maximum;
  • per-second billing as a common standard;
  • withdrawal from an initial charge for most tariff plans, which had an impact on the price level of  F2M calls.

   

Prices in the European Union

Comparing the level of prices for F2M calls offered by operators in other European countries it should be noted that the prices offered by the incumbent in 2007 were still high. Poland ranked second from bottom regarding the average price of a F2M call in the tariff plans included in the analysis carried out by Teligen. Despite the fall in prices for F2M calls they continue to be high in Poland compared to other European countries.

  

   

The full text of the analysis of mobile tariffs is available in Polish.

   

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    INTRODUCTION
    The President of the Office of Electronic Communications (President of UKE) is the national regulatory authority for the market of telecommunications and postal services. The President of UKE is also the specialised authority in the area of equipment conformity assessment, including telecommunications terminal equipment and radio equipment.

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    INTERNATIONAL ACTIVITY
    Here you can find information about the most import ant international events, significant for the development of telecommunications and postal markets In Poland and for the statutory activity of the Office of Electronic Communications.
    International activity of the President of UKE consists of, inter alia, cooperation with the European Commission, other EU institutions and Regulatory Authorities of EU Member State. It includes also the cooperation within organizations of which UKE is a member, i.e. the International Telecommunications Union (ITU), the Body for European Regulators of Electronic Communications (BEREC) and the European Committee for Postal Regulation (CERP).


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    CONTACT
    Contact details representatives of the Office of Electronic Communications (UKE).
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