NHH finalizes reduced fees for local loop access

Competition

The National Telecommunications Authority (NHH) announced on Monday it finalized reductions in the prices charged by the five significant market powers (SMP) on Hungary's fixed-line telecom market for partial or total local loop access.

Both monthly and one-off fees charged for the five SMPs -Emitel Zrt, Hungarotel Zrt, Invitel Zrt, Magyar Telekom Nyrt and Monortel Zrt- will drop significantly, enabling smaller service providers to offer better conditions to clients and making offers for ADSL service without voice service more frequent, thus promoting competition, the NHH said.
The decision was based on the Reference Unbundling Offers (RUOs) the five SMPs had to submit under a 2005 NHH decision. Under the resolution, the one-off fee charged for examining the suitability of a loop for providing broadband services -the most important one-off charge and, until now, the main barrier for newcomers on the market- will fall by 66% in the case of Emitel, 73% for Invitel, 82% for Monortel and 75% for Magyar Telekom, the NHH said, citing examples to show the size of the price cuts. The drops are in line with the preliminary resolutions of the authority regarding these companies' charges published in July.
The NHH did not mention Hungarotel, for which the fee was to have been reduced 80% under a preliminary resolution published a month earlier. The companies had until the start of September to respond to the NHH's draft resolution.

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