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FTR and MTR regulation Plans for 2013-2014

FTR and MTR regulation Plans for 2013-2014. Giedrius Pūras Regulatory Accounting and Statistics Division Communications Regulatory authority of Lithuania www.rrt.lt. Overview of current TR regulation (1). No new market analysis was done since 2009 :

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FTR and MTR regulation Plans for 2013-2014

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  1. FTR and MTR regulationPlansfor 2013-2014 Giedrius Pūras Regulatory Accounting and Statistics Division Communications Regulatory authority of Lithuania www.rrt.lt Baltic Regulators' meeting 2013

  2. Overview of current TR regulation (1) No new market analysis was done since 2009: • FTR and MTR regulation was updatedon 24th of December 2009 • EC recommendationonTRswastransposed • Symmetrical MTRs and symmetrical FTRs; • Balanced view was adopted – recognised the need for fair competition between fixed and mobile (same as in Rec.); • Glide path till 2012 was set (subject to change if pure LRIC calculated) • Specific POI regulation; Baltic Regulators' meeting 2013

  3. Overview of current TR regulation (2) What‘snewin 2013? • Provisionalmeasuresappliedfrom1st April 2013: • MTRsandFTRsreducedby 36%. • Peak/off-peak differentiation abandoned; • MTRs = 1,04 eurocent/min. (benchmark on pure LRIC) • FTRs = 0,06 eurocent/min. (MTR/FTR ratio BU-LRIC+ costs (2008) was applied to the benchmarked MTR) • Pure LRIC model finalised and results published for national consultation till 18th Sept. (TRs to be applied from 2014) • MTRs = 0,62 eurocent/min. (-40%); • FTRs = 0,21 eurocent/min. (-65%); Baltic Regulators' meeting 2013

  4. Current glide path Provisional measures Pure LRIC (?) LRAIC+ Baltic Regulators' meeting 2013

  5. Impact on interconnect revenue Balanced F2M payments Baltic Regulators' meeting 2013

  6. MTRs in Europe Baltic Regulators' meeting 2013

  7. Mobile: Retail price level (low) Baltic Regulators' meeting 2013

  8. Currentproblems: • AlloperatorsfightfurtherreductionsofTRs: • Non-discriminationobligation & international traffic; • Why should LT be the MTR leader in EU? • Emergence of pseudo-mobile operator’s: • Cheap mobile retail flat rate plans; • Barrier-free acquisition of mobile numbers; • Asymmetry in regulation (flexibility of SMP regulation) Baltic Regulators' meeting 2013

  9. Questions… Thank you! Giedrius Pūras _________________________________________________________________ Acting head of Price control and Statistics division Electronic communications department Communications regulatory authority of Lithuania Tel. +370-5-210 56 68 Fax. +370-5-216 15 64 e-mail: gpuras@rrt.lt Baltic Regulators' meeting 2013

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