SOME ALTERNATIVE OPERATORS CAUSED THAT THE PRICE OF INTERNET DIAL UP FOR THEIR CUSTOMERS HAS GROWN
14.6.2006
Some alternative operators did not allow reaching of an agreement on the new interconnect (termination) charges to enable the retention of low prices for their end customers. Unfortunately, ČESKÝ TELECOM is bound to reflect the required price of dial up interconnection in the final price for the customer. It will fulfil the wishes of some alternative operators to retain high profits as well as to make up for the financial loss from these calls.
The current price will be retained for customers connected through the ČESKÝ TELECOM network but also through the networks of the majority of alternative operators. All operators have the opportunity to provide their services also under a regulated origination model (Relevant market no. 8 -CEN/8/04.2006-16), in which they can set the prices as they wish. They can also use the flat rate charging model, FRIACO (flat rate for customer Internet dial up).
The end of regulation of the termination of Internet dial up Internet made it possible to rectify the situation with end user prices continuously declining while prices of interconnect remaining as before. “Some alternative operators did not show the will to reach an agreement despite of ČESKÝ TELECOM offering prices worth a multiple of the minimal price suggested by the Czech Telecommunications Office the last year”, said Martin Žabka, ČESKÝ TELECOM’s spokesperson. „It is up to each individual operator to choose the pricing policy and the charging model for their clients, he added.
From 15 July 2006, ČESKÝ TELECOM is launching a set of new prices for Internet dial up reflecting amounts requested by the alternative operators. This step made some of the operators change their end user prices. From the above date, the price of 971 xxx xxx calls will be different depending on the network in which the Internet call is originated.
About 80% of the total volume of Internet dial up traffic is conveyed through alternative operators. At present, this type of Internet communication is used by 300.000 customers and the quantity of these calls keeps declining. ČESKÝ TELECOM continues to invest in a high-speed Internet access adding CZK 150 mil. to increase the availability to 700 new locations by the end of October.
Charging models the new operators can use:
FRIACO: Flat rate charging for unlimited volumes of minutes sent from the customer to the operator network
Origination model: subject to regulation (Relevant market no. 8: CEN/8/04.2006-16). The final price is set by each operator individually. The operator pays ČESKÝ TELECOM a fee for the origination of call in the ČESKÝ TELECOM network. The price paid to ČESKÝ TELECOM is far lower that the one claimed by some alternative operators from ČESKÝ TELECOM within the termination model.
CS/CPS: Carrier Selection / Carrier Pre-Selection. From 1 July 2006, the service will be cheaper by another 0.06 per minute.
Termination model: ČESKÝ TELECOM pays OLO some fee for each minute of call.
For further information, please contact:
MARTIN ŽABKA
Press Spokesman
Tel: +420 271 463 359
Fax: +420 271 469 896
e-mail: tiskovy.odbor@ct.cz
ČESKÝ TELECOM, a. s., member of the Telefónica Group is the leading telecommunications company in the Czech Republic. Through its subsidiary company Eurotel Praha, spol. s r.o., it also has a significant presence in the Czech mobile services market. Further information about the firm and the services it offers is available at www.telecom.cz, which was rated as BestWeb 2003 in the WebTop100 survey.
Signum Temporis has consistently awarded ČESKÝ TELECOM for being one of the domestic capital market's most transparent firms in terms of providing information. Based on an open vote of specialists, members of the press and a nine-member committee, ČESKÝ TELECOM placed first in 2003, just as it did in 2001.
ČESKÝ TELECOM ranks among the most prominent firms on the Czech capital market in terms of capitalization and trading volumes. Its shares are also traded on the London Stock Exchange in the form of GDRs. ČESKÝ TELECOM's credit rating is the highest a Czech corporation can receive from top international rating agencies.
About Telefónica
Telefónica is one of the largest telecommunications companies in the world in terms of market capitalisation. Its activities are centered mainly on the fixed and mobile telephony businesses with broadband as the key tool for the development of both.
The company has a significant presence in 19 countries and a customer base that amounts more than 180 million accesses around the world. Telefónica has a strong presence in Latin America, where the company focuses an important part of its growth strategy.
Telefónica is a 100% listed company, with more than 1.5 million direct shareholders. Its share capital currently comprises 4,921,130,397 ordinary shares traded on the Spanish Stock Market (Madrid, Barcelona, Bilbao and Valencia) and on those in London, Paris, Frankfurt, Tokyo, New York, Lima, Buenos Aires and São Paulo.
