Reasonable pricing of 1 Mbps universal service broadband

On 1 July 2010, telecom operators assigned as universal service providers must provide users with a broadband subscription enabling 1 Mbps internet connectivity at a reasonable price.

FICORA estimates that a reasonable monthly fee for a universal service subscription is 30 to 40 euros. In addition to the monthly fee, telecom operators with a universal service obligation can charge their customers for installation and eventual reasonable expenses caused by construction. The reasonability of the construction expenses charged from the customer is always estimated case-specifically. The estimation takes into consideration whether the customer's place of residence or location is covered by existing network, or the terrain on which the network in constructed.

Because the aim of the legislation is to ensure everyone the right to a 1 Mbps subscription, FICORA maintains that even the acceptable construction expenses must be priced at such a level that residential customers can actually obtain the subscription. Thus, a universal service provider cannot automatically charge all expenses incurred from the construction from the user, but only a reasonable share of it. FICORA monitors the implementation of universal service obligation and if necessary, steps in case-specifically if pricing is unreasonable.