Fixed call tariff rebalancing continues

25 Jun 2012

In Ukraine’s fixed call market, the National Commission on Communications and Information Regulation (NKRZI or NCCR) plans to enforce a 10% increase in the minimum call rate for residents in both urban and rural areas, as part of an ongoing tariff rebalancing programme. As reported by Interfax, the increase is expected to enter force on 1 July, and the regulator plans to make a further 10% hike in minimum call tariffs for rural subscribers on 1 November. The measures follow reductions in fees for installing fixed lines (by 30% for residential and 60% for business subscribers), and the NKRZI states that it is necessary to gradually increase fixed call tariffs, as services are currently being provided at below-cost prices, especially in rural areas, and are being self-subsidised by operators’ other, more profitable services, such as mobile telephony. The watchdog believes that the policy of gradual adjustment to the floor price will create better conditions for market development, especially in rural telecoms.