MOBILE TELECOMS : EXECUTIVE INVESTIGATES ESTONIAN REGULATION.

On 16 April, the European Commission announced its decision to investigate a proposal by the Estonian Competition Authority (ECA) on mobile termination rates (MTRs) regulation in Estonia. The Commission is concerned that ECA's proposed pricing methodology does not fully follow the method set out in EU telecoms rules. MTRs are the rate mobile networks charge other networks for delivering voice calls.

First of all, with this methodology, the ECA is setting the MTA for the first half of 2013 above the cost-efficient level recommended in the Commission recommendation on the regulatory treatment of fixed and mobile termination rates in the EU. This would negatively impact consumers. Secondly, the Commission has serious doubts whether the termination rates will respect the ascending model of differentiated prices in the long-term after mid-2013.

More broadly, the Commission notes that the ECA failed to explain how the chosen approach would promote efficiency, enhance competition and maximise consumer benefit. Yet, such a price control remedy would run against Articles 8(4) and 13(2) of the Access Directive 2002/19/EC - modified in 2009 - in conjunction with Article 8 and Article 16(4) of the Framework Directive...