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NEWS ARTICLE

Draft Delegated Act setting single maximum Union-wide voice termination rates

In line with the European Electronic Communications Code, the European Commission will adopt by 31 December 2020, a Delegated Act setting single maximum Union-wide voice termination rates.

Termination rates are the rates telecommunications operators charge each other to deliver voice calls between their networks. A single maximum Union-wide voice termination rate (one for fixed and one for mobile termination services) will reduce fragmentation in telecoms markets, thus ensuring a more competitive, cross-border environment, which will ultimately benefit European consumers in the form of lower prices and more varied offers for fixed and mobile calls.

The Code sets out the principles, criteria and parameters that the Commission should use to set the Eurorates. These include the requirement that the maximum rates should be based on the recovery of incremental costs of an efficient operator, thereby avoiding excessive wholesale prices and contributing to key policy objectives of the Code: to promote competition and the interests of the citizens and to contribute to the development of the internal market.

In order to prepare the Delegated Act, in 2019, the Commission conducted a public consultation (the results of which are available on the Commission website). The rates proposed are based on the results (for mobile and fixed) of two cost models, constructed in line with the provisions of the Code by external consultants. Both models have been built in close collaboration with BEREC and experts from National Regulatory Authorities as well as subject to multiple rounds of public consultation.

On 29 July, the draft Delegated Act has also been sent to BEREC for opinion to be delivered in the course of October.

As required in the process for the adoption of Delegated Acts, the Commission has published the draft Act on the Commission’s Have Your Say! website for public feedback for a period of four weeks.

After having received the BEREC opinion and feedback from the stakeholders, the Commission will adopt the final Delegated Act by 31 December.