TKK releases draft decisions on mobile termination for consultation

Press release dated 4 September 2007

In its session on September 3, 2007, the Telekom-Control Commission (TKK) released its draft decisions on mobile termination for public consultation. These decisions were necessary because the Austrian Administrative Court overturned the initial decisions resulting from the market analysis for mobile termination. The Administrative Court overturned the decisions mainly on the grounds that the original TKK decisions did not "give the utmost consideration“ to an opinion of the European Commission, and because the Administrative Court considered the cost orientation requirement to be insufficiently defined.

Decisions define fees retroactively from October 2004 onward

The draft decisions of September 3, 2007, impose specific obligations (i.e., obligations to ensure non-discrimination and interconnection, to publish a reference offer for mobile termination services, and to ensure cost-based fees) on mobile operators for the period from October 2004 until the completion of the next market analysis. The cost orientation requirement for mobile termination fees was implemented in such a way that specific fees for mobile termination services are defined in accordance with the ruling of the Administrative Court and an opinion of the European Commission.

5.72 cents for all mobile operators from January 1, 2009 onward

The fees were ordered in accordance with a "glide path." This plan calls for a reduction of all mobile operators' mobile termination fees to a uniform level of 5.72 cents (excluding VAT) by January 1, 2009. The glide path, which begins with the higher operator-specific termination fees, serves the purpose of avoiding disruptive intervention and compensating for latecomer disadvantages. The definition of a glide path for the gradual reduction of these fees to a uniform level is also in line with the European trend.

Specifically, the following fees (excluding VAT) were ordered:

Mobile termination fees
Oct. 29, 2004 10.8613.1813.8019.62
Jan. 1, 2005 10.8613.1813.8019.62
Nov. 1, 2005 10.3412.6613.2819.62
Jan. 1, 2006 9.3411.6612.2817.79
July 1, 2006 8.3410.6611.2815.95
Jan. 1, 2007 7.139.4510.0713.90
July 1, 2007 5.918.238.8511.86
Jan. 1, 2008 5.727.027.649.81
July 1, 2008 5.725.806.427.76
Jan. 1, 2009 5.725.725.725.72

Resolution planned for mid-October 2007

In accordance with legal requirements, the four draft decisions will undergo national consultation on the RTR web site. Interested parties will have until the end of September to submit their comments and opinions. In addition, the draft decisions must be put out for EU-wide consultation, in which the European Commission and other national regulatory authorities have the right to submit comments and opinions. The deadline for such submissions is the beginning of October 2007. The TKK can be expected to issue a final resolution in mid-October 2007, once all input has been discussed and all arguments have been considered.