European Commission blocks deregulation proposed by FICORA
The European Commission has ruled against FICORA's intentions to remove ex ante regulation in the Finnish wholesale market for call termination on the public telephone network provided at a fixed location*. The deregulation would have set a European precedent.
In early autumn, FICORA presented to the Commission a proposal for deregulation in the wholesale market for fixed voice call termination. In FICORA's view, there was no longer need for regulation because telecoms operators cannot set their wholesale prices independently of the other players and end users. This is because mobile telephone subscriptions in Finland are considerably less expensive and more appealing to use than land-line telephone subscriptions. End users can in almost any case call to mobile phones instead of having to call to land-line phones.
It has been long since the majority of Finns started using mobile phones as their only telephone. The situation in Finland is exceptional since land-line telephone subscriptions are still very common in the greater part of Europe.
The economic ex-ante regulation of the markets should be exceptional and temporary. Regulation should be removed at a point when the majority of end users are not harmed.
'It seems like the Commission cannot see the market situation in Finland and how it differs from the rest of Europe, or how this affects the regulatory needs,' states FICORA Director-General Asta Sihvonen-Punkka.
The European Commission will soon publish its decision on its website.
Ms Asta Sihvonen-Punkka, Director-General, tel. +358 295 390 400
Ms Johanna Juusela, Director, tel. +358 295 390 402
Jukka-Pekka Juutinen, Head of Steering group, tel. +358 295 390 523
A call made to a land-line telephone number is routed from the network determined by the caller's telecoms operator to the fixed telephone network determined by the recipient's telecoms operator. The telecoms operator charges the caller's telecoms operator for call termination on its network. The charge is called a charge for call termination on the fixed telephone network or fixed call termination charge.