[PPT] - Telecommunications tariffs Telecommunications tariffs PowerPoint Presentation

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Telecommunications tariffs in Poland and new EU member countries:

Current status and perspectives

Telecommunications tariffs Telecommunications tariffs in Poland in Poland and new EU member countries: and new EU member countries:

Current status and perspectives Current status and perspectives

Dr.

Dr. Jerzy

Jerzy Kubasik Kubasik Institute of Electronics and Telecommunications Institute of Electronics and Telecommunications Poznan Poznan University of Technology University of Technology Poznan Poznan, Poland , Poland

ITU Seminar, Vilnius (Lithuania), October 5-7, 2004

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Poland: Regulatory milestones and market players

Poland: Regulatory milestones and market players

Tariff regulation in Poland

Tariff regulation in Poland

TP’s

TP’s tariff evolution tariff evolution

International tariffs comparisons

International tariffs comparisons

Independent operator’s tariffs

Independent operator’s tariffs

Examples from Germany

Examples from Germany

Alternative solutions

Alternative solutions

Trends in EU

Trends in EU-

15

15

Tariffs in New Member States

Tariffs in New Member States

Perspectives

Perspectives

Agenda Agenda

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Communications Act (1990)

Communications Act (1990)

Amendments of Communications Act

Amendments of Communications Act (1995) (1995)

Telecommunication Law (2000)

Telecommunication Law (2000)

Amendments of Telecommunication Law

Amendments of Telecommunication Law (2003) (2003)

New Telecommunication Law (2004)

New Telecommunication Law (2004)

Regulatory environment Regulatory environment – – milestones milestones

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

1990s

1990s – – “from the bottom” philosophy “from the bottom” philosophy -

fails

fails

late 1990s

late 1990s – – DLD market liberalization DLD market liberalization during TP privatization during TP privatization -

“secret

“secret

bligations”
bligations”
2003...

2003... – – acceleration ? acceleration ?

2004...

2004... – – great expectations ! great expectations !

Liberalisation milestones Liberalisation milestones

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Fixed and mobile penetration in Poland Fixed and mobile penetration in Poland

Source: GUS - Polish Statistical Office

8,2 8,6 9,3 10,3 11,5 13,0 14,9 16,9 19,3 22,8 26,3 28,3 29,6 31,1 32,1 33,1 0,0 0,0 0,0 0,0 0,0 0,1 0,2 0,6 2,1 5,0 10,2 17,5 24,9 36,4 45,6 51,1

10 20 30 40 50 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 1H2004

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Fixed penetration in EU (2003) Fixed penetration in EU (2003)

Source: ITU, May 2004

79,7 73,6 68,8 66,9 65,7 61,4 59,1 56,6 52,1 49,4 48,8 48,6 48,4 48,1 45,4 42,9 41,4 40,7 36,1 36,0 35,1 31,9 28,3 25,3 24,1 20 30 40 50 60 70 80 LU SE CY DK DE NL UK FR MT BE FI IE IT AT GR ES PT SL HU CZ EE PL LV LT SK

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Source: TP, July 2004

Local 9 0 .1 % DLD 8 1 .0 % F2 M 8 2 .5 % I LD 7 6 .4 %

Main com petitors

market shares market shares

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Mobile penetration in EU (2003) Mobile penetration in EU (2003)

Source: ITU, May 2004

106,1 101,8 96,5 91,6 90,4 90,1 88,9 88,7 87,9 87,1 84,5 84,1 78,6 78,5 78,5 76,8 72,5 69,6 68,4 67,6 66,6 65,0 58,4 52,9 45,1 40 50 60 70 80 90 100 110 LU IT CZ ES PT FI SE DK AT SL IE UK BE DE GR NL MT FR SK HU LT EE CY LV PL

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Mobile market shares in Poland (1H2004) Mobile market shares in Poland (1H2004)

Source: TP, July 2004

PTC 38,4% Centertel 31,2% Polkomtel 30,4%

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Tariffs in Poland Tariffs in Poland

R Ra an nk k ( ( 1 1

m

mo

s

st t e ex xp pe en ns si iv ve e) )

B Ba as sk ke et t

F Fe eb b. . 2 20 00 02 2 F Fe eb b. . 2 20 00 03 3 M Ma ay y 2 20 00 03 3 A Au ug g. . 2 20 00 0 3 3 N No

v

v. . 2 20 00 03 3

B Bu us si in ne es ss s b ba as sk ke et t

3 3 3 3 4 4 4 4 4 4

R Re es si id de en nt ti ia al l b ba as sk ke et t: :

1 1 3 3 3 3 3 3 3 3

f

fi ix xe ed d b ba as sk ke et t

1 13 3 7 7 8 8 7 7 8 8

d

do

m

me es st ti ic c F F2 2F F c ca al ll ls s

4 4 2 2 3 3 4 4 3 3

d

do

m

me es st ti ic c F F2 2M M c ca al ll ls s

2 2 2 2 2 2 3 3 4 4

I

I n nt te er rn ne et t d di ia al l-

u

up p

2 2 1 1 3 3 2 2 2 2

I

I L LD D c ca al ll ls s

3 3 5 5 5 5 5 5 5 5

Source: URTiP based on Teligen’s T-Basket

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

1991

1991-

1999

1999

– – operators (

perators (incl

incl. . TP TP) are free to set own tariffs ) are free to set own tariffs – – no maximum prices have ever been set no maximum prices have ever been set – – there were no safeguards against there were no safeguards against TPSA TPSA’s ’s predatory pricing predatory pricing – – TP TP has became the has became the de facto de facto regulator of regulator of prices for the entire market prices for the entire market

Tariff regulation in Poland Tariff regulation in Poland

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

2000

2000-

....

....

– – prices should be cost prices should be cost-

oriented
riented

– – SMP operators’ price lists are subject of SMP operators’ price lists are subject of URTiP’s URTiP’s approval approval – – SMP operators’ prices for universal services SMP operators’ prices for universal services should be cost should be cost-

based after 2003

based after 2003 – – reasonable price not defined reasonable price not defined – – in practice in practice status status-

quo

quo is retained is retained

Tariff regulation in Poland Tariff regulation in Poland

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Starting point 1992

Starting point 1992

– – high connection charge high connection charge – – cheap rental charge cheap rental charge – – cheap local calls cheap local calls – – long distance calls prohibitively expensive and high long distance calls prohibitively expensive and high value of the ratio of charges for long distance call to value of the ratio of charges for long distance call to local call (36:1) local call (36:1) – – expensive international calls expensive international calls – – not flexible approach to the modern elements of not flexible approach to the modern elements of tariffs such as off peak discounts and optional tariff tariffs such as off peak discounts and optional tariff plans plans

TP’s TP’s tariff evolution tariff evolution

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Installation charge

Installation charge

– – changed 3 times changed 3 times – – consumed by inflation consumed by inflation – – today is much lower than at the beginning of 1990’s today is much lower than at the beginning of 1990’s

Rental charge

Rental charge

– – changed 8 times in 3 waves changed 8 times in 3 waves

1991

1991-

92

92 – – rapid growth, struggles with high inflation rapid growth, struggles with high inflation

1993

1993-

98

98 – – “adverse” “adverse” rebalancing rebalancing policy policy

1999

1999-

2001

2001 – – “

“À la À la recherche recherche du temps du temps perdu perdu” ”,

, rapid growth rapid growth stopped by demand barrier, 5.4% churn rate in 2001 stopped by demand barrier, 5.4% churn rate in 2001

– – today at 1993 level today at 1993 level

TP’s TP’s tariff evolution 1992 tariff evolution 1992-

2001

2001

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Installation charges in real terms Installation charges in real terms

December 2001 constant prices

500 1 000 1 500 2 000 2 500 Jan.'90 Jan.'91 Jan.'92 Jan.'93 Jan.'94 Jan.'95 Jan.'96 Jan.'97 Jan.'98 Jan.'99 Jan.'00 Jan.'01 PLN

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Rental charges in real terms Rental charges in real terms

December 2001 constant prices

5 10 15 20 25 30 35 Jan.'90 Jan.'91 Jan.'92 Jan.'93 Jan.'94 Jan.'95 Jan.'96 Jan.'97 Jan.'98 Jan.'99 Jan.'00 Jan.'01 PLN per month

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Local call charges

Local call charges

– – changed 15 times changed 15 times

1991

1991-

93

93 – – consumed by inflation after rapid growth consumed by inflation after rapid growth

1994

1994-

99

99 – – trying to follow inflation trying to follow inflation

1999

1999-

2001

2001 – – growth stopped by demand barrier growth stopped by demand barrier

– – archaic unit based charging system archaic unit based charging system

Long

Long-

distance call charges

distance call charges

– – changed many times changed many times – – still very high still very high

1991

1991-

93

93 – – the same as local (ratio 36:1) the same as local (ratio 36:1)

1994

1994-

98

98 – – slow slow rebalancing rebalancing (ratio 12:1) (ratio 12:1)

1999

1999-

2001

2001 – – slightly accelerated slightly accelerated rebalancing rebalancing on the eve of

n the eve of

competitor’s market entry (ratio 4:1) competitor’s market entry (ratio 4:1)

TPSA’s TPSA’s tariff evolution tariff evolution

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Numbering zones in Poland Numbering zones in Poland

GDANSK ELBAG OLSZTYN LOMZA SUWA LKI OSTRO LEKA CIECHANÓW BYDGOSZCZ TORUN KOSZALIN SLUPSK PILA POZNAN LESZNO KALISZ SIERADZ ZIELONA GÓRA JELENIA GÓRA WALBRZYCH WROCLAW LEGNICA OPOLE CZESTOCHOWA KATOWICE BIELSKO BIALA KIELCE RADOM LÓDZ PIOTRKÓW TRYB. KONIN PLOCK WLOCLAWEK WARSZAWA SKIERNIEWICE SIEDLCE BIALA PODLASKA LUBLIN CHE LM ZAMOSC RZESZÓW PRZEMYSL KROSNO KRAKÓW TARNOBRZEG TARNÓW NOWY SACZ BIALYSTOK SZCZECIN GORZÓW WLKP.

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Local call charges in real terms Local call charges in real terms

December 2001 constant prices, peak rates

0,1 0,2 0,3 0,4 Jan.'90 Jan.'91 Jan.'92 Jan.'93 Jan.'94 Jan.'95 Jan.'96 Jan.'97 Jan.'98 Jan.'99 Jan.'00 Jan.'01 PLN per 3 min.

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Long distance call charges in real terms Long distance call charges in real terms

December 2001 constant prices, peak rates over 100 km

1 2 3 4 5 Jan.'90 Jan.'91 Jan.'92 Jan.'93 Jan.'94 Jan.'95 Jan.'96 Jan.'97 Jan.'98 Jan.'99 Jan.'00 Jan.'01 PLN per min.

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Fixed

Fixed-

to

to-

mobile call charges

mobile call charges

– – no changes since beginning of GSM in Poland (1996) no changes since beginning of GSM in Poland (1996) to 2003/04 to 2003/04 – – still very high still very high

International call charges

International call charges

– – no changes between 1994 and 2003 no changes between 1994 and 2003 – – still very high still very high

TP’s TP’s tariff evolution tariff evolution

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Installation charge

Installation charge

– – 5% below EU 5% below EU-

15 average

15 average

Rental charge

Rental charge

– – 37% below EU 37% below EU-

15 average

15 average – – 16% below cheapest EU 16% below cheapest EU-

15 country (UK)

15 country (UK) – – much more expensive than in CZ and SK much more expensive than in CZ and SK

OECD fixed charges basket

OECD fixed charges basket

– – 34% below EU 34% below EU-

15 average

15 average – – more expensive than in GR more expensive than in GR

International tariff comparisons International tariff comparisons

Residential users

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Installation charges (residential) Installation charges (residential)

June 2003, VAT excl., own research

109,00 107,43 105,61 103,28 102,28 102,03 100,00 91,69 74,90 71,83 71,17 67,85 67,81 59,50 54,54 50,00 44,45 38,56 37,82 29,34 24,14

20 30 40 50 60 70 80 90 100 110 120

at ie cz fi dk hu it uk CEC pt EU se pl es be lu de fr nl gr sk

€

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Rental charges (residential) Rental charges (residential)

June 2003, VAT excl., own research

194,40 192,00 174,36 173,28 163,68 153,75 151,43 150,27 147,60 145,68 141,84 130,48 130,44 122,40 119,76 116,45 112,92 94,94 89,82 75,67 72,20

60 80 100 120 140 160 180 200

ie lu at nl be dk es EU pt it de se fr fi gr hu uk pl CEC cz sk

€

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

OECD fixed basket (residential) OECD fixed basket (residential)

June 2003, VAT excl., own research

215,89 202,00 196,16 180,84 174,59 174,21 165,68 164,50 163,33 161,97 150,73 144,05 143,06 138,15 136,86 131,26 125,63 108,50 104,80 96,80 77,03

50 100 150 200

ie lu at nl be dk it EU es pt de se fi fr hu uk gr pl CEC cz sk

€

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Local call charges

Local call charges

– – 43% below EU 43% below EU-

15 average

15 average – – 14 14-

18% below cheapest countries (ES, GR, LU)

18% below cheapest countries (ES, GR, LU)

Long

Long-

distance call charges

distance call charges

– – 24% above EU 24% above EU-

15 average

15 average – – almost 3 times more expensive calls almost 3 times more expensive calls than in SE and DK than in SE and DK

Long

Long-

distance

distance vs

vs. local call charges ratio

. local call charges ratio

– – highest in Europe highest in Europe – – 2 times above EU average 2 times above EU average

International tariff comparisons International tariff comparisons

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Local call charges Local call charges

June 2003, VAT excl., 3 minutes, peak rates, own research

0,164 0,160 0,145 0,138 0,132 0,127 0,126 0,123 0,120 0,115 0,109 0,108 0,107 0,105 0,103 0,099 0,099 0,081 0,078 0,077 0,066

0,06 0,08 0,10 0,12 0,14 0,16

be at uk sk fr cz ie fi pt EU CE dk hu nl de se it lu gr es pl

€

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Long Long-

distance call charges

distance call charges

June 2003, VAT excl., 3 minutes, peak rates, own research

0,352 0,330 0,313 0,297 0,296 0,290 0,289 0,287 0,284 0,278 0,273 0,271 0,218 0,203 0,192 0,188 0,164 0,149 0,108 0,099 0,081

0,05 0,10 0,15 0,20 0,25 0,30 0,35

it cz de sk CE uk pt es hu fi fr pl EU ie at gr be nl dk se lu

€

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Long Long-

distance call charges ratio

distance call charges ratio

June 2003, VAT excl., peak rates, own research

4,14 3,75 3,56 3,03 2,89 2,65 2,61 2,41 2,41 2,26 2,16 2,07 2,00 1,98 1,61 1,42 1,20 1,00 1,00 1,00 1,00

0,5 1,5 2,5 3,5 4,5

pl es it de CEC hu cz gr pt fi sk fr uk EU ie nl at be dk lu se

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Important note

Important note

– – giving into account Purchasing Power Parity giving into account Purchasing Power Parity (PPP) prices in Poland are ca. 2 times higher (PPP) prices in Poland are ca. 2 times higher than presented here than presented here

Another important note

Another important note

– – May 2002: May 2002: 1 € = 3,7783 PLN 1 € = 3,7783 PLN – – March 2004: March 2004: 1 1 € € = 4,9149 = 4,9149 PLN PLN – – Polish tariffs expressed in Polish tariffs expressed in € € „ „fell down fell down” ” by more than by more than 21% 21% without any changes without any changes in nominal terms (PLN) in nominal terms (PLN)

International tariff comparisons International tariff comparisons

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Fixed

Fixed-

to

to-

mobile call charges

mobile call charges

– – 40% and more above EU average 40% and more above EU average

International call charges

International call charges

– – 2 2 -

4 times above EU average

4 times above EU average – – even 14 times higher than lowest standard rates even 14 times higher than lowest standard rates available from incumbents from EU countries available from incumbents from EU countries

International tariff comparisons International tariff comparisons

Conclusions from 2002, numbers no longer valid

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

DLD/ILD/F2M operators

DLD/ILD/F2M operators

– – contract required contract required – – “open” “open” call call-

by

by-

call

call blocked by TP blocked by TP – – different charging systems different charging systems (unit (unit-

based, per minute, PSP)

based, per minute, PSP) – – minimum monthly charge minimum monthly charge – – volume discounts available volume discounts available

Independent operator’s tariffs Independent operator’s tariffs

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

DLD tariffs in Poland DLD tariffs in Poland

Basic peak rates, PLN, excl. VAT, March 2004

0,34(30/ 30) - 0,31* 0,33(60/ 60)/ 0,24(60/ 1) 0,31-0,26* / 0,275(30/ 6) 0,36TU/ 0,18* -0,31/ 0,28* (0,29/ 0,27) (30/ 6) 0,40TU - 0,26 0,20*

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

F2M F2M tariffs in Poland tariffs in Poland

Basic peak rates, PLN, excl. VAT, March 2004

1,10(30/ 30) - 1,00* 1,05(60/ 60)/ 0,98(60/ 1) 1,03-0,98* / 0,96(30/ 6) 1,40TU -1,09/ 0,90* (1,00/ 0,90) (30/ 6) 1,15TU - 0,990,20*

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

ILD tariffs in Poland ILD tariffs in Poland (to US)

(to US)

Basic peak rates, PLN, excl. VAT, March 2004

1,18(30/ 30) - 1,15* 1,05(60/ 60)/ 1,19(60/ 1) 0,89-0,79* 2,00TU - 1,75* (1,00/ 0,95 ) (30/ 6) 2,00TU

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

ILD tariffs in Poland ILD tariffs in Poland (to DE)

(to DE)

Basic peak rates, PLN, excl. VAT, March 2004

0,86 (30/ 30) - 0,80* 1,05(60/ 60)/ 1,19(60/ 1) 0,84-0,69* 1,20TU - 0,84/ 0,79* (0,82/ 0,78) (30/ 6) 1,20TU

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Tariffs in Poland Tariffs in Poland -

comparisons

comparisons

OECD Residential basket, PLN, VAT excl., Aug. 2003

1 200 1 300 1 400 1 500 1 600 1 700

D i a l

g
E

f e k t N e t i a

P

r a k t y c z n a N e t i a

R
z

m

w

n a D i a l

g
T

e l e S e k u n d a ( E f e k t ) T e l e 2

I

n d y w i d u a l n i T e l e 2

B

i z n e s N O M

T

e l e 1 4 4 N e t i a 1

E

k

n
m

i c z n a 1 5 5 N O M

B

i z n e s 1 4 4 D i a l

g
T

e l e S e k u n d a P l u s ( E f e k t ) D i a l

g
P

r

f

i t D i a l

g
P

i

n

i e r T P

S

t a n d a r d

w

y D i a l

g
T

e l e S e k u n d a ( P r

f

i t ) T P

N

i e d r

g

i N e t i a

E

f e k t y w n a ( P S T N ) D i a l

g
T

e l e S e k u n d a ( P i

n

i e r ) T P

T

P D

m

T P

A

k t y w n y D i a l

g
T

e l e S e k u n d a P l u s ( P r

f

i t ) D i a l

g
T

e l e S e k u n d a P l u s ( P i

n

i e r ) T P

T

P B i z n e s

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Tariffs in Poland Tariffs in Poland -

comparisons

comparisons

OECD Business basket, PLN, VAT incl., Aug. 2003

2 800 3 000 3 200 3 400 3 600 3 800 4 000

D i a l

g
T

e l e S e k u n d a P l u s ( E f e k t ) D i a l

g
T

e l e S e k u n d a ( E f e k t ) D i a l

g
E

f e k t N e t i a

E

f e k t y w n a ( P S T N ) T e l e 2

B

i z n e s T e l e 2

I

n d y w i d u a l n i N e t i a

R
z

m

w

n a D i a l

g
T

e l e S e k u n d a P l u s ( P i

n

i e r ) E n e r g i s

P

r z y j a z n y N e t i a 1

P

r z e d s i e b i

r

c z a 1 5 5 N O M

B

i z n e s 1 4 4 D i a l

g
T

e l e S e k u n d a ( P i

n

i e r ) N O M

T

e l e 1 4 4 N e t i a

P

r a k t y c z n a D i a l

g
T

e l e S e k u n d a P l u s ( P r

f

i t ) T P

A

k t y w n y D i a l

g
T

e l e S e k u n d a ( P r

f

i t ) T P

T

P D

m

N e t i a 1

E

k

n
m

i c z n a 1 5 5 D i a l

g
P

i

n

i e r T P

T

P B i z n e s T P

S

t a n d a r d

w

y D i a l

g
P

r

f

i t

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Call prices’ comparisons

Call prices’ comparisons – – problem problem

per minute ?

per minute ? but but

different charging methods

different charging methods

real time (i.e. per second with possible set

real time (i.e. per second with possible set-

up

up charge, minimum charge, etc.) charge, minimum charge, etc.)

time based (i.e. per minute, 30 sec. with possible

time based (i.e. per minute, 30 sec. with possible set set-

up charge, minimum charge, etc.)

up charge, minimum charge, etc.)

pulse based (units: fixed price

pulse based (units: fixed price -

different time

different time duration) duration)

Tariffs in Poland Tariffs in Poland -

comparisons

comparisons

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Call prices’ comparisons

Call prices’ comparisons – – simple solution simple solution

average call price

average call price

call duration distribution

call duration distribution

basic solution: exponential distribution call

basic solution: exponential distribution call time with average = 180 s time with average = 180 s

Tariffs in Poland Tariffs in Poland -

comparisons

comparisons

0,000 0,003 0,006 0,009 1 61 121 181 241 301 361 421 481 541 601 661 721 781 841 t [s] Prawdopodobienstwo

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Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Tariffs in Poland Tariffs in Poland -

comparisons

comparisons

Peak rate, PLN, VAT excl., Aug. 2003

0,00 0,20 0,40 0,60 0,80 1,00 1,20 1,40

D i a l

g
E

f e k t N e t i a

R
z

m

w

n a N e t i a

E

f e k t y w n a ( a n a l

g

) T P

A

k t y w n y D i a l

g
P

r

f

i t T P

S

t a n d a r d

w

y T P

S

e k u n d

w

y T P D

m

N e t i a

P

r a k t y c z n a D i a l

g
P

i

n

i e r T P

S

e k u n d

w

y T P B i z n e s T P

S

e k u n d

w

y T P T P

N

i e d r

g

i N e t i a

S

p

k
j

n a T P

O

s z c z e d n y D i a l

g
A

t u t

Average local call

SLIDE 42

42

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Tariffs in Poland Tariffs in Poland -

comparisons

comparisons

Peak rate, PLN, VAT excl., Aug. 2003

0,60 0,70 0,80 0,90 1,00 1,10 1,20 1,30 1,40

Tele2 - Tele2 Biznes Tele2 - Tele2 Indywidualni NOM - KORPO 1044 prefiks Netia - Efektywna (analog) Netia - Przedsiebiorcza 1055 Dialog - TeleSekunda + Energis - Przyjazny NOM - BIZNES 1044 prefiks Dialog - TeleSekunda Energis - Skuteczny NOM - TELE 1044 prefiks TP - Sekundowy TP Biznes Netia - Spokojna Netia - Praktyczna Netia - Rozmowna Netia - Ekonomiczna 1055 TP - Aktywny Dialog - Profit Dialog - Pionier Dialog - Efekt Dialog - Atut TP - Standardowy TP - Niedrogi TP - Oszczedny TP - Sekundowy TP Dom TP - Sekundowy TP

Average LD call

SLIDE 43

43

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Tariffs in Poland Tariffs in Poland -

comparisons

comparisons

Peak rate, PLN, VAT excl., Aug. 2003

2,50 3,00 3,50 4,00

Tele2 - Tele2 Biznes Energis - Skuteczny NOM - KORPO 1044 dial-up Netia - Efektywna (analog) Netia - Przedsiebiorcza 1055 Tele2 - Tele2 Indywidualni Energis - Przyjazny NOM - BIZNES 1044 dial-up Dialog - TeleSekunda Dialog - TeleSekunda + NOM - TELE 1044 dial-up TP - Aktywny TP - Sekundowy TP Biznes TP - Standardowy TP - Sekundowy TP Dom TP - Sekundowy TP Netia - Spokojna Netia - Praktyczna Netia - Rozmowna Netia - Ekonomiczna 1055 Dialog - Efekt TP - Niedrogi Dialog - Pionier Dialog - Profit

Average F2M call

SLIDE 44

44

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Tariffs in Poland Tariffs in Poland -

comparisons

comparisons

Peak rate, PLN, VAT excl., Aug. 2003

2,00 2,50 3,00 3,50

T e l e 2

T

e l e 2 B i z n e s D i a l

g
T

e l e S e k u n d a + E n e r g i s

P

r z y j a z n y E n e r g i s

S

k u t e c z n y T e l e 2

T

e l e 2 I n d y w i d u a l n i N O M

B

I Z N E S 1 4 4 d i a l

u

p N O M

K

O R P O 1 4 4 d i a l

u

p N O M

B

I Z N E S 1 4 4 p r e f i k s N O M

K

O R P O 1 4 4 p r e f i k s N O M

T

E L E 1 4 4 d i a l

u

p N O M

T

E L E 1 4 4 p r e f i k s D i a l

g
T

e l e S e k u n d a N e t i a

E

f e k t y w n a ( a n a l

g

) N e t i a

P

r z e d s i e b i

r

c z a 1 5 5 D i a l

g
P

i

n

i e r N e t i a

S

p

k
j

n a N e t i a

P

r a k t y c z n a N e t i a

R
z

m

w

n a N e t i a

E

k

n
m

i c z n a 1 5 5 D i a l

g
P

r

f

i t D i a l

g
E

f e k t T P

S

t a n d a r d

w

y T P

A

k t y w n y T P

N

i e d r

g

i T P

S

e k u n d

w

y T P D

m

T P

S

e k u n d

w

y T P B i z n e s T P

S

e k u n d

w

y T P

Average ILD call to DE

SLIDE 45

45

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Tariffs in Poland Tariffs in Poland -

comparisons

comparisons

Peak rate, PLN, VAT excl., Aug. 2003

2,00 2,50 3,00 3,50 4,00 4,50 5,00 5,50 6,00

Energis - Przyjazny Energis - Skuteczny Tele2 - Tele2 Biznes Tele2 - Tele2 Indywidualni NOM - BIZNES 1044 prefiks NOM - BIZNES 1044 dial-up NOM - KORPO 1044 prefiks NOM - KORPO 1044 dial-up NOM - TELE 1044 dial-up NOM - TELE 1044 prefiks Dialog - TeleSekunda Dialog - TeleSekunda + Netia - Efektywna (analog) Netia - Przedsiebiorcza 1055 Netia - Spokojna Netia - Praktyczna Netia - Rozmowna Netia - Ekonomiczna 1055 Dialog - Pionier Dialog - Profit Dialog - Efekt TP - Standardowy TP - Aktywny TP - Niedrogi TP - Sekundowy TP Dom TP - Sekundowy TP Biznes TP - Sekundowy TP

Average ILD call to US

SLIDE 46

46

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Standard

Standard

– – rental 42.70 rental 42.70 – – pulse based (0.29) pulse based (0.29) – – local: TU per 3/6’ local: TU per 3/6’ – – DLD: TU per 43,5/87’’ DLD: TU per 43,5/87’’ ie

ie. 0.488/0.244 per

. 0.488/0.244 per minute minute

“Free evenings and

“Free evenings and weekends” weekends”

– – rental: 85.00 PLN rental: 85.00 PLN – – per second (set per second (set-

up)

up) – – local: 0.122 (0.195) / local: 0.122 (0.195) / unlimited free* unlimited free* – – DLD: 0.488 (0.195) / DLD: 0.488 (0.195) / unlimited free* unlimited free* * * to TP subscribers and via TP

to TP subscribers and via TP network only network only

New tariffs New tariffs

Anti Anti-

competitive ?

competitive ?

PLN, VAT incl., Aug. 2004

SLIDE 47

47

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Examples from Germany Examples from Germany

March 2004, VAT 16% incl., €-cent

SLIDE 48

48

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Examples from Germany Examples from Germany

March 2004, VAT 16% incl., €-cent

SLIDE 49

49

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Examples from Germany Examples from Germany

March 2004, VAT 16% incl., €-cent

SLIDE 50

50

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Examples from Germany Examples from Germany

March 2004, VAT 16% incl., €-cent

SLIDE 51

51

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Examples from Germany Examples from Germany

March 2004, VAT 16% incl., €-cent

SLIDE 52

52

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Alternative solution in UK Alternative solution in UK

to PL to PL:

:

fixed network fixed network

0870 7 990 990 0870 7 990 990

split rate split rate

1.5 1.5 p/min.

p/min.

(weekend) (weekend) mobile mobile network network

0911 9 223 223 0911 9 223 223

premium rate premium rate

13 13 p/min.

p/min.

Basic Basic weekend weekend rate rate > 32 p/min. > 32 p/min.

March 2004, VAT 17.5% incl.

SLIDE 53

53

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Alternative solution in Poland Alternative solution in Poland

VAT incl., September 2004

0708 1 77 612 0708 1 77 612 – – 0.35 PLN 0.35 PLN – – 0.08 € 0.08 € 0708 2 77 612 0708 2 77 612 – – 1.28 PLN 1.28 PLN – – 0.30 € 0.30 € 0708 3 77 612 0708 3 77 612 – – 2.06 PLN 2.06 PLN – – 0.48 € 0.48 € 0708 4 77 612 0708 4 77 612 – – 2.56 PLN 2.56 PLN – – 0.59 € 0.59 € 0708 5 77 612 0708 5 77 612 – – 3.66 PLN 3.66 PLN – – 0.84 € 0.84 € 0708 6 77 612 0708 6 77 612 – – 4.22 PLN 4.22 PLN – – 0.97 € 0.97 € 0708 7 77 612 0708 7 77 612 – – 4.88 PLN 4.88 PLN – – 1.13 € 1.13 € 0708 8 77 612 0708 8 77 612 – – 7.63 PLN 7.63 PLN – – 1.76 € 1.76 €

SLIDE 54

54

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Alternative solution in Poland Alternative solution in Poland

VAT incl., September 2004

to EU, CH, US, CA, AU to EU, CH, US, CA, AU

SLIDE 55

55

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Source:

Source:

– – 9th Report from the Commission on the 9th Report from the Commission on the Implementation of the Telecommunications Implementation of the Telecommunications Regulatory Package Regulatory Package

Trends in E U Trends in E U-

15

15

SLIDE 56

56

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Trends in E U Trends in E U-

15

15

„9th Report on Implementation...”

Monthly rental

13.26 14.20 13.01 14.19 12.40 13.96 12.18 11.83 12.71 13.97 12.61 11.96 11 12 13 14 15 8/1998 8/1999 8/2000 8/2001 8/2002 8/2003 € Residential (VAT incl.) Business (VAT excl.)

SLIDE 57

57

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Trends in E U Trends in E U-

15

15

„9th Report on Implementation...”

12.5 12.3 12.7 13.7 13.4 13.5 66.0 52.5 41.5 36.6 33.4 32.9 10 20 30 40 50 60 70 8/1998 8/1999 8/2000 8/2001 8/2002 8/2003 €-cent

3 min call, VAT incl.

SLIDE 58

58

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Trends in E U Trends in E U-

15

15

„9th Report on Implementation...”

10 min call, VAT incl. 39.8 39.7 39.4 39.5 38.8 38.9 214.0 166.8 131.9 112.9 102.0 100.4 50 100 150 200 250 8/1998 8/1999 8/2000 8/2001 8/2002 8/2003 €-cent

SLIDE 59

59

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Trends in E U Trends in E U-

15

15

„9th Report on Implementation...”

34.0 31.5 29.8 30.0 29.5 29.4 78.5 70.3 64.0 62.7 61.0 60.7 20 30 40 50 60 70 80 8/1998 8/1999 8/2000 8/2001 8/2002 8/2003 € Residential (VAT incl.) Business (VAT excl.) „Old” OECD basket

SLIDE 60

60

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Trends in E U Trends in E U-

15

15

„8th Report on Implementation...”

26.28 21.12 68.54 64.77 54.74 27.42 20 30 40 50 60 70 8/2000 8/2001 8/2002 € Personal basket (VAT incl.) Business basket ( VAT excl.) OECD mobile basket

SLIDE 61

61

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Trends in E U Trends in E U-

15

15

9th Report on Implementation...

1.43 1.31 1.08 1.03 0.98 1.22 1.03 0.93 0.73 0.70 0.67 1.68

0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8

8/1998 8/1999 8/2000 8/2001 8/2002 8/2003 €

Residential (VAT incl.) Business (VAT excl.)

OECD international basket

SLIDE 62

62

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Source:

Source:

– – 4th Report on Monitoring of EU Candidate 4th Report on Monitoring of EU Candidate Countries (Telecommunication Services Countries (Telecommunication Services Sector) Sector)

Tariffs in New Member States Tariffs in New Member States

SLIDE 63

63

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Already completed

Already completed

– – Cyprus (2001) Cyprus (2001) – – Estonia Estonia – – Lithuania Lithuania

Not completed yet

Not completed yet

– – Czech Rep. Czech Rep. – – Hungary Hungary – – Latvia Latvia – – Malta Malta – – Poland Poland – – Slovakia Slovakia – – Slovenia Slovenia

Tariffs in New Member States Tariffs in New Member States

Tariff Tariff rebalancing rebalancing

SLIDE 64

64

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Approval by NRA

Approval by NRA

– – Cyprus Cyprus – – Estonia* Estonia* – – Malta Malta – – Poland Poland – – Slovenia Slovenia

Price cap

Price cap

– – Czech Rep. Czech Rep. – – Hungary Hungary – – Latvia Latvia – – Lithuania Lithuania – – Slovakia Slovakia

Tariffs in New Member States Tariffs in New Member States

Type of tariff regulation Type of tariff regulation

SLIDE 65

65

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Pulse

Pulse-

based

based

– – Malta Malta – – Poland* Poland*

Tariffs in New Member States Tariffs in New Member States

Call charging system Call charging system

Time

Time-

based

based

– – Cyprus Cyprus – – Czech Rep. Czech Rep. – – Slovenia Slovenia

Real time

Real time

– – Estonia Estonia – – Hungary Hungary – – Latvia Latvia – – Lithuania Lithuania – – Poland* Poland* – – Slovakia Slovakia

SLIDE 66

66

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Prices in €

Prices in €

Operators’

Operators’ point of view point of view

Very cheap

Very cheap

Mostly below

Mostly below EU EU-

15 average

15 average

Prices in €/PPP

Prices in €/PPP

Consumers’

Consumers’ point of view point of view

Very expensive

Very expensive

Mostly above

Mostly above EU EU-

15 average

15 average

Tariffs in New Member States Tariffs in New Member States

Two different pictures Two different pictures

SLIDE 67

67

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Tariffs in New Member States Tariffs in New Member States

„4th Report on Monitoring of EU CC ...”, VI 2003

SLIDE 68

68

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Tariffs in New Member States Tariffs in New Member States

„4th Report on Monitoring of EU CC ...”, VI 2003

SLIDE 69

69

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Tariffs in New Member States Tariffs in New Member States

„4th Report on Monitoring of EU CC ...”, VI 2003

SLIDE 70

70

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Tariffs in New Member States Tariffs in New Member States

„4th Report on Monitoring of EU CC ...”, VI 2003

SLIDE 71

71

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Tariffs in New Member States Tariffs in New Member States

„4th Report on Monitoring of EU CC ...”, VI 2003

SLIDE 72

72

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Tariffs in New Member States Tariffs in New Member States

„4th Report on Monitoring of EU CC ...”, VI 2003

SLIDE 73

73

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Tariffs in New Member States Tariffs in New Member States

„4th Report on Monitoring of EU CC ...”, VI 2003

SLIDE 74

74

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Tariffs in New Member States Tariffs in New Member States

„4th Report on Monitoring of EU CC ...”, VI 2003

SLIDE 75

75

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Tariffs in New Member States Tariffs in New Member States

„4th Report on Monitoring of EU CC ...”, VI 2003

SLIDE 76

76

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Tariffs in New Member States Tariffs in New Member States

„4th Report on Monitoring of EU CC ...”, VI 2003

SLIDE 77

77

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Tariffs in New Member States Tariffs in New Member States

„4th Report on Monitoring of EU CC ...”, VI 2003

SLIDE 78

78

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Tariffs in New Member States Tariffs in New Member States

„4th Report on Monitoring of EU CC ...”, VI 2003

SLIDE 79

79

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Trends to be continued...

Trends to be continued...

– – Growing fixed charges Growing fixed charges – – Falling usage charges Falling usage charges – – LD call = local call LD call = local call (unified price of all calls in fixed network) (unified price of all calls in fixed network) – – F2M call = local call F2M call = local call (unified price of all calls in both fixed and (unified price of all calls in both fixed and mobile networks) mobile networks) – – ILD call = local call ILD call = local call (unified price for all phone calls) (unified price for all phone calls)

Perspectives Perspectives

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80

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Trends to be continued...

Trends to be continued...

– – Bundled offers Bundled offers (minutes included in rental), (minutes included in rental), – – Lump sum fixed charges Lump sum fixed charges (free usage or unlimited minutes included in (free usage or unlimited minutes included in rental) rental)

Perspectives Perspectives

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81

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Shifting the balance of charges:

Shifting the balance of charges:

away

away from usage charges to fixed charges from usage charges to fixed charges

away

away from „cost from „cost-

of
f-
use” to „cost

use” to „cost-

of
f-
wnership”
wnership”

Perspectives Perspectives

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82

Politechnika Poznanska Instytut Elektroniki i Telekomunikacji

Dr. Jerzy Kubasik
ul. Piotrowo 3a, 60-965 Poznan, Poland

phone: +48 61 6652669, fax: +48 61 6652572 e-mail: jkubasik@et.put.poznan.pl; URL: www.et.put.poznan.pl/~jkubasik Politechnika Poznanska Instytut Elektroniki i Telekomunikacji