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Anacom fails PT’s proposal regarding the SLRO monthly fee and imposes new conditions

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Anacom determined that the monthly SLRO fee (Subscriber Line Resale Offer) to be charged by Portugal Telecom will be seven percent lower than the amount initially proposed by the operator. In addition, the activation of the resale offer for subscriber activation lines will be 25 percent below what the company intended to charge.

In this sense, the SLRO monthly fee will amount to 11.32 euros and the activation of the subscriber line resale offer cannot exceed 5.6 euros.

Anacom justifies, in a statement, that the disapproval of PT’s proposal is due to the fact that the amount presented «is close to the price charged to customers for the monthly subscription (12.66 euros), which would leave room for new operators to make re-renting PT’s subscriber line to its customers «.

With the prices set, the entity intends to place the SLRO monthly fee between that which PT charges for the monthly subscription to its customers and the monthly fee that alternative operators pay PT for the monthly local loop. The regulator explains that this is a way to encourage investment in own infrastructure and create space for innovation and the introduction of new services. The price now proposed is 14 percent above the monthly local loop fee (9.42 euros), but 11 percent below the price charged by PT in its monthly subscription.

Anacom considers, on the other hand, that «the SLRO may increase the margins and business opportunities of operators in the face of a situation in which they provide only indirect access services».

Aggregated offers The same draft resolution also defines the conditions under which the PT group companies can proceed with joint traffic and monthly offers. This type of offer can only be launched when there are 150 thousand activated SLRO accesses, when requested by the group companies to the beneficiary of the SLRO to bill and collect all services provided, until then invoiced by PT (a condition that intends to encourage single invoice) and when basic ISDN and primary ISDN accesses are available for SLRO activation.

The three conditions must be registered cumulatively, says the draft decision, adding that PT’s retail offers must be defined in a cost-oriented logic.

The regulator explains that the minimum number of activated SLRO accesses is a way of opening space for the creation of aggregated traffic and local loop offers, ensuring that they cannot appear automatically.

According to Portugal Telecom’s own estimates, in 2006 there should be 807 thousand accesses associated with the SLRO, of which 75 thousand will belong to PT itself.

The operator selection and pre-selection project was also approved with a view to introducing the extension of eligible traffic to calls to non-geographic numbers (except emergency services and Internet access).

Related News:

2005-04-01 – Anacom realigns PT’s obligations in opening the local loop

2005-02-22 – Anacom formalizes interconnection prices and deadlines for installing a local loop

2005-02-15 – Anacom wants to reduce prices on the local loop