The National Commission for the State Regulation of Electronic Communications, Radio Frequency Spectrum and Postal Services of Ukraine (NCEC) informs about the completion of the public consultation process and approval of estimated tariffs for national traffic termination services for mobile and fixed voice communications based on the Long-Run Incremental Cost (LRIC) model.
On October 18, 2023, the NCEC approved the Resolution “On Establishing Settlement Tariffs for National Traffic Termination Services for Mobile and Fixed Voice Communications”.
Thus, the resolution stipulates that the estimated tariffs for national traffic termination services for mobile and fixed voice communications for 2024-2025 will be as follows:
- for mobile voice communication 7.5 kopecks in 2024-2025,
- for fixed voice communication 6.0 kopecks in 2024, 5.5 kopecks in 2025.
Discussions on the levels of settlement tariffs for national traffic termination services were held actively and openly in the format of public consultations with market participants.
Kyivstar and Vodafone expressed their support for the tariffs proposed by the NCEC, while lifecell, Ukrtelecom and Datagroup expressed their suggestions and comments on the proposed level of settlement tariffs.
Taking into account all the proposals received, Ukraine’s international obligations and commitment to the EU Digital Single Market, the NCEC made the final decision on the level of settlement tariffs for 2024-2025, which, according to the commissioners, balances the interests of the state, operators and consumers.
The last time the national traffic termination tariff was revised in Ukraine was in 2021, and currently there is a single wholesale settlement tariff for national traffic termination for both mobile voice and fixed voice communications, which is 8 kopecks.
Reduction of settlement rates
The introduction of differentiated settlement tariffs for national traffic termination services for mobile and fixed voice communications (rather than one tariff for both markets) based on the BU-LRIC model is primarily about implementing EU best practices, implementing the Law of Ukraine “On Electronic Communications”, and ensuring consistency in the NCEC’s policy of reducing settlement tariffs for national traffic termination services.
The reduction of settlement tariffs creates the basis for providers to revise tariffs for interconnection calls and promote competition, which should have a positive effect on the end consumer’s ability to communicate freely at a lower price.
“We have been working for a long time and continue to hold a consistent position on bringing the tariffs for terminal services to their economically justified level. Termination fees are a wholesale tariff for mutual settlements between operators,” said Oleksandr Zhyvotovsky, Chairman of NCEC.
In his opinion, the calculated amounts of these wholesale tariffs give every operator every leverage to set its own retail tariffs and ensure freedom of communication for subscribers.