2000/263/EC: Commission Recommendation of 20 March 2000 amending Recommendation 98/511/EC on interconnection in a liberalised telecommunications market (Part 1 - Interconnection pricing) (notified under document number C(2000) 651) (Text with EEA relevance)
Date: 2000-03-20
Institutions: European Commission
Subjects: liberalisation of the market, systems interconnection, telecommunications, telephone charges

L 83/30

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Official Journal of the European Communities

4.4.2000

COMMISSION RECOMMENDATION

of 20 March 2000

amending Recommendation 98/511/EC on interconnection in a liberalised telecommunications
market (Part 1 — Interconnection pricing)

(notified under document number C(2000) 651)

(Text with EEA relevance)

(2000/263/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Directive 97/33/EC of the European Parliament and of the Council of 30 June 1997 on
interconnection in telecommunications with regard to ensuring universal service and interoperability
through application of the principles of Open Network Provision (ONP) (1), as amended by Directive
98/61/EC (2), and in particular Article 7(5) thereof,

After consultation of the advisory committee set up by Article 9(1) of Council Directive 90/387/EEC of 28
June 1990 on the establishment of the internal market for telecommunications services through the
implementation of open network provision (3), as amended by Directive 97/51/EC of the European
Parliament and of the Council (4),

(1) Whereas point 9 of Commission Recommendation 98/511/EC (5) that amends Recommendation
98/195/EC (6) on interconnection in a liberalised telecommunications market (Part 1 — Interconnec-
tion pricing), states that the Recommendation, and in particular the ‘best current practice charges’ in
point 4 and the data in Annex II, will be reviewed by the Commission by 31 July 1999 at the latest
and updated where necessary.

(2) Whereas, as noted in the fifth report on the implementation of the telecommunications regulatory
package (7), suitable cost accounting systems have not yet been implemented in a large number of
Member States and therefore it is considered appropriate to update the ‘best current practice’ prices
ranges in this Recommendation for year 2000.

(3) Whereas in implementing the requirement for interconnection charges to be cost oriented, the ‘best
current practice’ charges provide guidance to national regulatory authorities for assessing the
interconnection charges for call termination proposed by operators notified as having significant
market power,

in the absence of adequate cost accounting information.

(4) Whereas it is appropriate that the next review of this Recommendation at the end of 2000 should
assess in particular the need to continue with publication of ‘best current practice’ charges and the
methodology used,

HEREBY RECOMMENDS:

Recommendation 98/511/EC is amended as follows:

Article 1

(1) OJ L 199, 26.7.1997, p. 32.
(2) OJ L 268, 3.10.1998, p. 37.
(3) OJ L 192, 24.7.1990, p. 1.
(4) OJ L 295, 29.10.1997, p. 23.
(5) OJ L 228, 15.8.1998, p. 30.
(6) OJ L 73, 12.3.1998, p. 42.
(7) COM (1999) 537.

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1. Point 4a is replaced by the following:

‘4a. Based on the data given in Annex II of this Recommendation, the following “best current practice”
charges are recommended maximum interconnection charges for the period starting 1 January
2000:

“Best current practice” interconnection charges

“Best current practice” interconnection charge for call termination at the LOCAL level (i.e. at a
local exchange or as near a local exchange as possible)

between 0,5 and 0,9 cent per minute (at peak rate)

“Best current practice” interconnection charge for SINGLE TRANSIT interconnection (metropolitan
level)

between 0,8 and 1,5 cent per minute (at peak rate)

“Best current practice” interconnection charge for DOUBLE TRANSIT interconnection (national
level — more than 200 km)

between 1,5 and 1,8 cent per minute (at peak rate)’

2. The wording of point 9 is replaced by the following sentence: ‘This Recommendation, in particular the
need to continue with publication of “best current practice” charges and the methodology used, will be
reviewed at the end of 2000’.

3. Figure 1a in section 1 of Annex II is replaced by the following:

‘Figure 1a:

Interconnection rates for call termination (1 November 1999)

4. The table in section 3 of Annex II is replaced by the Table in the attached Annex.

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Official Journal of the European Communities

4.4.2000

This Recommendation is addressed to the Member States.

Article 2

Done at Brussels, 20 March 2000.

For the Commission

Erkki LIIKANEN

Member of the Commission

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Official Journal of the European Communities

L 83/33

ANNEX

Table

Interconnection cost data for Member States (1 November 1999)

Interconnect charges per minute
based on a three minute call duration
Basic starting values in cents per minute
Prices are exclusive of VAT

Exchange rates
to euro

Interconnection charges in local currencies
Date at which prices are effective
Other supplementary information

Member
States

Austria

Local

1,82 (1)

Single
transit

1,82

Double
transit (2)

2,40

13,76

Belgium

1,07

1,80

2,56

40,34

Denmark (5)

0,84

1,18

1,80

7,434

Finland

1,43 (1)

1,43

2,63-3,28 (3)

5,945

France

0,61

1,50

2,23

6,559

Germany (4)

1,01

1,72-2,17

2,63

1,956

Greece (*)

1,93 (1)

1,93

2,76

329,3

Italy (7)

1,00

1,60

2,29

1 936

Prices since January 1998 (ATS):
— local = not provided
— region = 0,25 per min.
— national = 0,33 per min.

Prices since January 1999 (BEF):
— local = 0,156 per call + 0,378 per min.
— region = 0,295 per call + 0,628 per min.
— national = 0,418 per call + 0,894 per min.

Prices set by NRA from 1.10.1999 (DKK/100):
— local exchange = 4 per call + 4,9 min.
— single tandem = 6 per call + 6,8 per min.
— double tandem = 6 per call + 11,4 per min.

Prices since May 1999 (FIM/100):
— local = not provided
— teledistrict = 16,5 per call + 3 per min.
— national = teledistrict + 7,15 to 11 per min.

Prices since January 1999 (FRF/100):
— local exchange = 4,03 per min.
— single tandem = 9,81 per min.
— double tandem (> 200 km) = 14,65 per min.

Prices since January 1998 (DEM/100):
— City = 1,97 per min.
— Regio 50 = 3,36 per min.
— Regio 200 = 4,25 per min.
— National = 5,14 per min.

Prices for mobile operators (GRD):
— metropolitan = 1,7 per call + 5,8 per min.
— national = 2,4 per call + 8,3 per min.

Prices since July 1999 (ITL):
— local = 19,4 per min.
— single transit = 31 per min.
— double transit = 44,4 per min.

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Official Journal of the European Communities

4.4.2000

Interconnect charges per minute
based on a three minute call duration
Basic starting values in cents per minute
Prices are exclusive of VAT

Member
States

Ireland

Local

1,04

Luxembourg

2,25 (1)

Netherlands (6)

1,00

Single
transit

1,60

2,25

1,41

Exchange rates
to euro

0,7876

Double
transit (2)

2,26

Interconnection charges in local currencies
Date at which prices are effective
Other supplementary information

Prices since 1 December 1998 (IEP/100):
— local = 0,82 per min.
— single transit = 1,27 per min.
— double transit = 1,78 per min.

2,25

40,34

Prices since September 1998 (LUF):
— any level: 0,335 per call + 0,796 per min.

1,70

2,204

Portugal

0,99

1,63

2,58

200,5

Spain

0,99

1,59

3,07

166,4

Sweden (8)

0,86-0,90

1,16-1,21

1,59-1,67

9,09-8,68

United Kingdom

0,54

0,82

1,71

0,641

Prices charged since 1.7.1998 (NLG/100):
— local exchange = 1,5 per call + 1,7 per min.
— single transit = 2,1 per call + 2,4 per min.
— double transit = 2,5 per call + 2,9 per min.

Prices decided by ICP for 2000 (PTE):
— local = 2 per call + 1,32 per min.
— metropolitan = 2 per call + 2,60 per min.
— national = 2 per call + 4,50 per min.

Prices since 1 December 1998 (ITL):
— local = 1,65 per min.
— single transit = 2,65 per min.
— double transit = 5,11 per min.

Prices since March 1999 (SEK/100):
— local exchange = 4,2 per call + 6,4 per min.
— single segment = 4,9 per call + 8,9 per min.
— double segment = 5,6 per call + 12,6 per min.

Prices since March 1999 (GBP/100):
— local exchange = 0,3472 per min.
— single tandem = 0,5279 per min.
— double tandem (> 200 km) = 1,098 per min.

Source: Commission and national regulatory authorities.

Notes

(1) In Finland, Austria, Greece and Luxembourg the lowest interconnection charge covers interconnection at a local or a tandem exchange. Thus the ‘local’ rate is the same as

the ‘single transit’ rate.

(2) The ‘double transit’ rate includes a distance component for links of > 200 km
(3) In Finland at double-transit there is a price range depending on the volume of traffic carried.
(4) The four distance-related tariff zones in Germany cannot be translated, in the ratio 1: 1, into the three technical element based areas defined in the Table. In Germany, the
local tariff area is identical to the so-called City Zone which always comprises several local networks, i.e., including also those of large cities. Single-transit interconnections
are also established in this City Zone, specially in large cities. Therefore, in Germany, City Zone interconnections are also included within the single-transit interconnection
services area. As concerning the Regio-200 Zone, double-transit
interconnections, Regio-200
interconnection services are also included within the double-transit interconnection services area.

interconnections are also established. Hence, apart

from national

(5) The Danish NRA set new tariffs from 1 October 1999. However, the Telecommunications Complaints Board is currently reviewing these new tariffs following an appeal
over the NRA decision, and therefore these figures have not been used in the calculation of ‘best current practice’ for year 2000 (Previous tariffs since 15 August 1999
were: Local = 0,93 cent per minute, Single-Transit = 1,67 cent per minute, Double-Transit = 1,91 cent per minute).

(6) At present OPTA is deciding on the final tariffs for the period 1 July 1998 to 1 July 1999, and the preliminary tariffs for the period 1 July 1999 to 1 July 2000. Until these
preliminary tariffs are determined, KPN will have to offer the tariffs as mentioned in the Table. These are the preliminary tariffs for the period 1 July 1998 to 1 July 1999,
as determined by OPTA last year.

(7) Preliminary tariffs set by Italian NRA pending final decision.
(8) Price range reflects significant currecy fluctuations that have taken place in Sweden since new tariffs were set in March 1999 until November 1999. The lowest figures have

been considered to derive ‘best current practice’.

(*) Tariffs not yet approved by the national regulatory authority