Press Release: Telecoms: European Commission urges Latvian regulator to set lower fixed and mobile termination rates

The European Commission asked on 5 February 2010 the Latvian telecoms regulator, Sabiedrisko pakalpojumu regulesanas komisija (SPRK), to change the way it calculates fixed and mobile termination rates so that these fees can be lowered, making calls cheaper for consumers. Termination Rates are the wholesale prices which telecoms operators charge each other for connecting incoming calls to subscribers using their networks and are ultimately included in phone call prices. In May 2009, the Commission recommended an EU wide approach for calculating Termination Rates ( IP/09/710 ) but allowed telecoms regulators to calculate termination rates in other ways for a transitional period. These temporary calculation methods should be based on objective criteria and ensure that termination rates reflect the costs that an efficient operator incurs to provide such services. The Commission has also said that access and price control obligations should be imposed on all operators with significant market power to avoid potential competition problems.