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EN EN

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 20.2.2006

SEC(2006)193

VOLUME II

COMMISSION STAFF WORKING DOCUMENT

ANNEX TO THE

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL,

THE EUROPEAN PARLIAMENT, THE EUROPEAN ECONOMIC AND

SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS

EUROPEAN ELECTRONIC COMMUNICATIONS REGULATION AND

MARKETS 2005 (11TH REPORT)

{COM(2006)68 final}

11th Report on the Implementation of the Telecommunications Regulatory Package – 2005 Staff Working Paper - Vol. 2

CORRIGENDUM

Figure 27

EU25 average fixed-to-mobile interconnection charges in the national interconnection market

12.63

13.80

12.18

16.42

13.81

14.75

10

11

12

13

14

15

16

17

July 2004 October 2005

€-ce

nts

per m

inut

e

SMP operators Non-SMP operators All operators

Data for EU25 average have changed due to the revision of the IC rates in FR and PT. Figure 28

Interconnection mobile termination charges of SMP and non-SMP operators on the national interconnection market, October 2005

EU25 weighted average: SMP op. 12.18 - non-SMP op. 13.81EU15 weighted average: SMP op. 11.74 - non-SMP op. 13.96

14.1

6

14.5

0

13.4

9

12.8

9

13.4

3

12.1

0

2.16

8.91

15.0

0

14.0

2

12.4

2

16.5

9

18.7

8

7.33

8.59

8.78

20.2

7

10.5

1

14.2

0

13.6

2

16.4

2

15.9

8

14.3

5

10.4

3

15.0

0

14.1

0

13.8

2

21.0

0

10.9

8

12.41

13.00

10.5

1

0

5

10

15

20

25

BE CZ DK DE EE EL ES FR IE IT CY LV LT LU HU MT NL AT PL PT SI SK FI SE UK

€-ce

nts

per m

inut

e

SMP Non-SMP EU25 SMP EU25 NON-SMP

Revised data for FR and PT

Figure 29

Fixed-to-mobile national average interconnection charges EU25 weighted average (all operators, €-cents), October 2005: 12.63EU15 weighted average (all operators, €-cents), October 2005: 12.40

16.32

15.51

15.08

17.52

15.80

16.05

17.57

15.00

16.30

12.84

21.28

11.27

9.06

15.27

14.20

13.62

16.42

14.86

13.49

12.89

13.43

12.59

2.16

8.91

10.43

15.00

14.02

12.42

13.72

12.41

16.59

13.82

18.81

10.98

7.33

8.59

8.78

12.00

21.42

15.52

17.88

16.10

10.43

11.36

3.12

18.76

10.09

10.51

0

5

10

15

20

25


€-ce

nts

per m

inut

e

July 2004 Oct-05 EU25 average October 2005 Revised data for FR and PT Figure 30


12.40

11.74

13.65

15.75

20.54

18.81

13.96

16.57

18.46

18.73

18.76

14.74

17.28

10

12

14

16

18

20

22

July 2001 July 2002 July 2003 July 2004 October 2005

€-ce

nts

per m

inut

e

SMP operators Non-SMP operators All operators Data for EU15 average have changed due to the revision of the IC rates in FR and PT.

Figure 31

Fixed-to-mobile national average interconnection charges EU15 weighted average (all operators, €-cents):

2005: 12.40 - 2004: 14.74 - 2003: 17.28

17.9

15.6

15.1

19.1

18.1

17.5

13.4

21.9

12.9

26.8

15.5

20.9

16.32

15.51

15.08

17.52

15.80

16.05

17.57

15.00

16.30

12.84

21.28

11.27

9.06

15.27

14.20

13.62 14

.86

13.49

12.89 13.43

12.59

15.00

13.72

12.41 13

.82

7.33 8.5

9

8.78

15.5

0

5

10

15

20

25

30

BE DK DE EL ES FR IE IT LU NL AT PT FI SE UK

€-ce

nts

per m

inut

e

July 2003 July 2004 October 2005 EU15 average October 2005 Revised data for FR and PT. Data for FR in 2003 not comparable

Figure 32

I.C. charges for call termination on mobile networks (peak) in €-cents,October 2005EU25 weighted average: SMP op. (*): 12.64 Non-SMP op: 13.81 All op.: 12.96 EU15 weighted average: SMP op. (*): 12.30 Non-SMP op: 13.96 All op.: 12.79

13.00

12.83

12.50

12.10

8.91

8.28

13.40

13.20

13.15

13.01

13.00

10.98

10.86

10.51

10.43

8.59

8.40

6.80

2.16

13.18

12.90

12.54

9.28

11.41

0 5 10 15 20 25 30

DK (Sonofon) (+)

DE-T-Mobil, Vodafone

AT- T-Mobile(*)

ES- Vodafone Airtel(*)(+)

HU-Vodafone (*)

NL-KPN Mobile(*), Vodafone(Libertel)

PT- Vodafone(+)(*), TMN(+)(*)

IE-O2 (*)(+), Vodafone(*)(+)

ES-Telefonica Mov.(*)(+)

BE-Proximus (Belgacom Mob).(*)(+)

FR-Orange(*)(+), FR- SFR(*)(+)

IT-TIM(*)(+), Vodafone Omnitel(*)(+)

MT-Vodafone(*)(+)

SK-T-Mobile (ex EuroTel Bratislava), Orange

AT- Mobilkom(*)

CZ-Eurotel Praha(+)(*), T-Mobile (+)(*), CeskyMobil

LT-Bite, Omnitel, Tele2

UK-Orange(*), T-Mobile(*)

LV-Tele2(*), LMT(*)

SE-Telia-Sonera(*), Tele2 Mobil(*), Vodafone(*)

FI-Elisa(*)

UK-O2(*), Vodafone(*)

FI-Sonera(*)

CY-CYTA(*)(+)

€-cents per minute

Revised data for FR

Figure 33


16.59

15.00

14.50

18.20

17.26

15.98

21.84

17.78

16.59

15.00

14.79

14.47

13.90

13.80

13.51

14.70

14.76

15.17

18.04

19.50

20.27

21.00

14.35

14.90

0 5 10 15 20 25 30

SI- Si.mobil(*)(+)

SI- Western Wireless

BE- Base

EL- Q Telecom

PT- Optimus

SI- Mobitel(*)(+)

IE- Meteor(*)

EE-Tele2

PL- Centertel(*)(+), Polkomtel(*)(+), PolskaTelefonia Cyfrowa(*)(+)

BE- Mobistar (*)(+)

EE- EMT(+), Elisa

ES-Amena (Retevision Mov.) (*)

EL- TIM (Stet Hellas)(+)

LU-ETP(+), Tango (Tele2)(+), Voxmobile(*)

DE-Eplus, O2 (Viag)

FR- Bouygues Tlc(*)

HU-Pannon(*)

NL-Ben (T-Mobile), Orange (Dutchtone), O2 NL(Telfort)

EL-Cosmote(*)(+), Vodafone(*)(+)

DK TDC (TeleDK)(+), TeliaSonera (inc. Orange)

IT-Wind

HU-T-Mobile Telecom (Westel)(*)

AT-One(*), Tele.ring(*)

MT-Mobisle Communications(*)(+)


Revised data for FR

Figure 50

Low usage mobile basket

5.5

5.9

6.0

6.4

7.5

7.6

8.7

9.5

9.6

9.9

9.9

10.1

10.8

10.8

10.9

11.1

11.4

11.7

11.8

12.1

12.5

14.0

14.4

15.1

15.4

15.8

16.6

16.7

17.5

18.0

18.6

19.0

19.4

19.7

20.0

20.3

20.5

20.7

21.2

21.2

22.3

22.9

23.3

23.3

25.4

27.0

30.2

36.0

37.8

0 5 10 15 20 25 30 35 40

Lithuania, Omnitel, Mano

Cyprus, Cytamobile, Pay Monthly Light

Luxembourg, Tango, Knock-out *

Lithuania, Tele 2, Joker Seima *

Finland, Sonera, Netto *

Sweden, Tele 2 Comviq, Comviq Knock-Out *

Poland, Centertel, Jedna Idea 10 *

Slovakia, Orange, Pausal 25 + SMS *

Finland, Elisa, Aito *

Slovakia, T-Mobile, 20Viac *

Sweden, Teliamobile, Telia Mobil 30 (plus) *

Latvia, Tele 2, Free *

Denmark, TDC Mobil, Mixit Regning *

Denmark, Sonofon, Debillos

Slovenia, Si.Mobil, Orto Smart

Czech, Eurotel, Start *

Czech, T-Mobile, T 30 *

Hungary, Pannon GSM, Pannon 50

Estonia, Tele 2, Dynamo

Portugal, TMN, Plano Pos Pago *

Estonia, EMT, FirmaPakett *

Netherlands, Vodafone, Vodafone 12.50 *

Poland, Era, Classic 70 *

Spain, Vodafone, Contrato Tarde

Luxembourg, LuxGSM, Liberty

Spain, MoviStar, Contrato Eleccion *

Slovenia, Mobitel, Basic

Latvia, LMT, National Call

Hungary, T-Mobile, Társalgó

France, SFR, Le Compte 1h *

Greece, Cosmote, Basic *

Italy, Vodafone, Vodafone Easy *

Belgium, Mobistar, My Life 50 *

Italy, TIM, TIM Menu Family + Tutti TIM Province Option

Portugal, Vodafone, Plano Best *

Greece, Vodafone, Vodafone 60

Belgium, Proximus, ProxiTime All Day

Malta, Vodafone, Lite Option

Austria, Mobilkom, A1 Xcite Remix

Austria, T-Mobile, Relax Light *

Malta, Go Mobile, On The Go

Ireland, O2, five + weekender *

Germany, Vodafone, Sun

Germany, T-Mobile, TellySmile

Ireland, Vodafone, Perfect Fit 30 *

UK, O2, O2 25 *

Netherlands, KPN, MobielPlus 17.50

France, Orange, Forfait Initial 2h Forfait SMS 30

UK, T-Mobile, Relax 50 *

Euro per month

2005

2004

Entries with an asterisk (*) after the name have changed the package name and structure since last year. Data for Vodafone, Portugal have been modified.

Figure 51

Medium usage mobile basket

12.7

16.5

16.7

16.9

18.2

18.8

19.2

19.3

19.7

20.0

20.5

21.3

22.5

23.3

24.6

25.2

26.7

28.1

28.9

29.1

30.3

31.7

31.9

32.0

32.1

32.6

33.3

34.7

35.6

35.7

37.2

37.2

38.5

40.4

40.6

40.7

42.9

43.4

43.4

43.8

43.9

47.9

47.9

48.6

48.8

49.5

52.4

53.9

58.1

0 10 20 30 40 50 60 70

Cyprus, Cytamobile, Pay Monthly Classic



Denmark, Sonofon, Kvantum 99 *

Lithuania, Omnitel, Mano *

Lithuania, Tele 2, Joker Laisvalaikis


Estonia, Tele 2, Extra 300 *

Finland, Elisa, Reilu *


Poland, Era, Komfort Komfort 120 *



Estonia, EMT, Prima 300 *




Slovakia, Orange, Pausal 30 maxi *





Greece, Cosmote, Cosmote 120 *




Luxembourg, LuxGSM, Business

Czech, Eurotel, Silver *

France, SFR, Le Compte 2h30 *


Spain, Vodafone, Contrato Autonomos 10 *



UK, O2, O2 100 *



Spain, MoviStar, Contrato Planes 30 *

Malta, Go Mobile, Business Go

Malta, Vodafone, Active Option


Hungary, T-Mobile, Partner 2 *



Belgium, Proximus, ProxiFun Anytime 60

Germany, T-Mobile, TellyActive More Talk



Germany, Vodafone, Vodafone 100


Euro per month

20052004


Figure 52

High usage mobile basket

20.0

30.4

30.9

32.1

33.2

33.3

34.5

37.4

37.6

39.0

40.7

43.8

45.1

45.3

46.4

46.7

50.9

51.5

51.5

52.1

53.6

54.1

55.1

55.7

56.3

57.1

57.2

58.1

59.3

59.8

61.0

64.1

65.2

66.2

68.6

70.3

71.3

71.8

72.9

72.9

76.3

78.7

82.6

83.1

87.0

89.2

92.8

94.4

98.8

0 20 40 60 80 100 120










Slovenia, Si.Mobil, Smart III






Denmark, TDC Mobil, MobilExtra200 *


Austria, T-Mobile, Relax 400 *

UK, O2, O2 200 *




Greece, Cosmote, Cosmote 240



Slovakia, Orange, Pausal 60 uni *


Austria, Mobilkom, A1 Business Easy

Czech, Eurotel, Gold *



UK, T-Mobile, Relax 200 plus text *

Italy, Vodafone, Vodafone Plus *


France, Orange, Forfait Initial 4h



France, SFR, Essentiel 5H +50% en plus *

Belgium, Proximus, ProxiPro Anytime 300

Belgium, Mobistar, My Life 150 Option Fix *


Malta, Vodafone, Extra Option



Netherlands, KPN, MobielPlus 30


Ireland, O2, twenty + weekender *


Germany, T-Mobile, Relax 200

Euro per month

20052004

Entries with an asterisk (*) after the name have changed the package name and structure since last year Data for Vodafone, Portugal have been modified.

The OECD Mobile baskets are calculated under the understanding that value allowances are used for voice calls only. As some tariffs have intended the allowance to cover both voice calls and messages this can result in overstating the SMS part of the basket beyond what the operator's billing system would do. Countries which may be affected are Belgium, Hungary, Ireland, Luxembourg and Portugal.

Figure 77

Minim

um cost of local and long-distance calls, incum

bent operator5.20

5.37

3.35

3.07

3.09

7.95

7.80

6.35

7.87

1.70

4.05

3.09

1.62

12.55

4.27

4.90

3.08

8.47

2.63

12.18

4.81

7.41

6.88

8.10

5.20

10.83

3.35

4.90

3.07

3.09

9.66

10.50

6.35

7.87

4.02

1.70

4.05

3.09

1.62

12.55

5.18

5.90

12.59

8.47

2.63

10.00

4.81

7.41

8.09

10.80

4.02

3.90

0 2 4 6 8 10 12 14

BE

CZ

DK

DE

EEEL

ESFR

IEIT

CY

LVLT

LUH

UM

TN

LAT

PLPT

SISK

FISE

UK

JPU

SA

€-cents, VAT included

Local calls 2005Long distance calls 2005

(60)

(45)

(60)

(300)

(60)

(60)

(30)

(60)

(25)

(60)

(60)

(160)

(60)

(300)

(60)

(60)

(60)

(180)

R

evised data for BE, D

E, LT, MT, A

T and SI Figure 78

Minim

um cost of a call to a m

obile phone, incumbent operator

11.22

23.20

10.65

17.90

6.35

7.87

4.02

4.05

18.60

28.88

5.18

19.20

28.27

13.31

5.11

10.00

4.81

7.41

8.09

8.10

22.07

1.70

18.23

3.07

3.35

1.62

0 5 10 15 20 25 30 35

BE

CZ

DK

DE

EEEL

ESFR

IEIT

CY

LVLT

LUH

UM

TN

LAT

PLPT

SISK

FISE

UK

JPU

SA


(60)

(30)

(60 min.)

(30)

(60)

(60)

(60)

(60)

(12)

(26)

R


E, LT, MT, A

T and SI

Figure 79

Minim

um cost of an international call

27.2

19.0

37.6

12.1

0.0

6.6

4.9

10.4

3.1

0.5

13.8

12.0

6.3

31.0

4.0

1.7

4.1

20.6

1.6

10.4

36.0

65.8

12.1

11.4

10.0

4.8

7.4

61.5

25.9

0.4

12.33.4

10.4

18.0

13.7

79.0

47.5

0 10 20 30 40 50 60 70 80

BE

CZ

DK

DE

EEEL

ESFR

IEIT

CY

LVLT

LUH

UM

TN

LAT

PLPT

SISK

FISE

UK

USA

JP


Near

Distant

MT not to scale

Value: 215.55

R

evised data for AT

Figure 81

Business m

onthly rental

13.9

12.9

12.8

13.5

6.5

10.5

13.2

8.7

8.6

6.9

16.0

14.2

13.2

15.3

18.9

10.3

12.7

8.9

9.1

10.1

12.4

20.3

14.9

19.1

14.2

16.8

13.8

11.9

12.1

6.9

16.0

14.2

13.2

15.3

18.9

10.3

12.98

8.9

9.1

10.1

12.4

20.3

13.8

18.4

13.1

20.0

17.0

12.8

6.5

13.2

8.6

13.1

20.0

15.3

0 5 10 15 20 25

BE

CZ

DK

DE

EEEL

ESFR

IEIT

CY

LVLT

LUH

UM

TN

LAT

PLPT

SISK

FISE

UK

USA

JP

€, VAT excluded

Aug 2004

Sep 2005

EU

25 Sep 2005

Line rental for B

usiness PSTN in PT has been corrected

Figure 101

10 min. call to near EU

country

0.77

0.99

1.75

2.12

2.24

2.30

2.91

2.52

2.72

2.77

3.76

4.07

3.41

0.58

0.67

0.85

1.23

1.37

1.53

1.54

1.90

1.90

1.98

2.12

2.27

2.30

2.49

2.52

2.72

2.81

3.83

4.07

5.95

3.08

1.23

0.58

0.80

0.92

1.37

1.53

1.54

1.47

1.90

1.77

1.98

1.59

0.77

0.99

1.25

1.80

0.0

1.0

2.0

3.0

4.0

5.0

6.0

SEC

YD

KN

LEE

DE

SILU

ESIE

MT

CZ

ATFI

BE

ITFR

HU

ELU

KSK

PTPL

LTLV

€, including VAT

20042005

EU

25 Average

International call charges for PT in 2004 have been m

odified Figure 102

10 min. call to distant EU

country

1.75

3.50

2.12

3.06

5.75

3.79

3.76

3.97

4.06

4.07

4.77

5.95

8.06

0.66

1.37

1.53

2.08

2.22

2.46

2.49

2.92

2.97

3.10

3.11

3.42

3.79

3.83

3.87

4.06

4.07

4.90

6.80

8.18

2.75

3.26

1.00

2.06

1.53

2.20

2.45

2.91

2.71

2.92

2.97

3.10

2.71

1.40

1.97

2.12

2.75

0 1 2 3 4 5 6 7 8 9

CY

LUSI

ESC

ZU

KIT

FRD

EEL

BE

HU

NL

SKAT

PTEE

SEPL

IED

KLT

FILV

MT

€, including VAT

20042005

EU

25 Average


odified

Figure 103

10 min. call to U

SA

1.06

1.37

1.53

2.38

2.41

2.91

2.97

3.06

2.75

3.76

4.77

5.95

0.66

0.85

1.23

1.40

1.78

1.90

1.90

2.08

2.12

2.27

2.38

2.56

2.93

2.97

3.11

3.36

3.83

4.07

4.90

5.95

2.24

2.12

2.07

3.50

1.90

1.90

1.65

1.23

0.85

0.80

1.75

1.98

4.07

1.98

1.53

1.37

1.06

1.97

0 1 2 3 4 5 6

CY

NL

SED

ELU

SIES

MT

ATIE

CZ

BE

UK

ITFR

DK

EEEL

SKPT

HU

PLLT

FILV

€, including VAT

20042005

EU

25 Average


odified Figure 104

10 min. call to Japan

6.23

3.42

3.60

6.58

6.71

7.90

8.58

8.78

9.08

12.48

16.01

22.60

2.93

3.50

3.71

3.87

4.98

5.70

5.72

5.95

6.66

6.71

7.90

8.58

8.78

9.08

12.69

16.01

20.25

22.60

5.95

6.77

5.57

5.20

4.98

5.77

3.71

2.91

1.37

2.40

3.50

7.68

20.12

1.37

0.82

5.64

3.60

3.42

1.48

5.20

0 5 10 15 20 25

CY

LUU

KEL

SEN

LAT

SKC

ZFR

BE

ESFI

SILV

PLH

UD

EIE

ITD

KPT

EEM

TLT

€, including VAT

20042005

EU

25 Average


odified

Figure 114

Price for 34Mb/s, 200 km circuits

116

981

103

842

108

273

226

196

135

541

272

954

231

720

419

255

262

348

77

607

64

124

194

400

214

974

168

073

305

366

179

040

88

951

380

035

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000

BE DK DE EE EL ES FR IE IT CY LT HU AT PT SI UK USA-NY

USA-CA

JP

€ pe

r yea

r, VA

T ex

clud

ed

2004 2005 EU15

Country acronyms have been changed to reflect correct prices in AT, PT, SI, UK, USA and JP

11th Report on the Implementation of the Telecommunications Regulatory Package – 2005 Staff Working Paper - Vol. 2

CORRIGENDUM

Figure 27


12.63

13.80

12.18

16.42

13.81

14.75

10

11

12

13

14

15

16

17


€-ce

nts

per m

inut

e


Data for EU25 average have changed due to the revision of the IC rates in FR and PT. Figure 28

Interconnection mobile termination charges of SMP and non-SMP operators on the national interconnection market, October 2005

EU25 weighted average: SMP op. 12.18 - non-SMP op. 13.81EU15 weighted average: SMP op. 11.74 - non-SMP op. 13.96

14.1

6

14.5

0

13.4

9

12.8

9

13.4

3

12.1

0

2.16

8.91

15.0

0

14.0

2

12.4

2

16.5

9

18.7

8

7.33

8.59

8.78

20.2

7

10.5

1

14.2

0

13.6

2

16.4

2

15.9

8

14.3

5

10.4

3

15.0

0

14.1

0

13.8

2

21.0

0

10.9

8

12.41

13.00

10.5

1

0

5

10

15

20

25


€-ce

nts

per m

inut

e


Revised data for FR and PT

Figure 29

Fixed-to-mobile national average interconnection charges EU25 weighted average (all operators, €-cents), October 2005: 12.63EU15 weighted average (all operators, €-cents), October 2005: 12.40

16.32

15.51

15.08

17.52

15.80

16.05

17.57

15.00

16.30

12.84

21.28

11.27

9.06

15.27

14.20

13.62

16.42

14.86

13.49

12.89

13.43

12.59

2.16

8.91

10.43

15.00

14.02

12.42

13.72

12.41

16.59

13.82

18.81

10.98

7.33

8.59

8.78

12.00

21.42

15.52

17.88

16.10

10.43

11.36

3.12

18.76

10.09

10.51

0

5

10

15

20

25


€-ce

nts

per m

inut

e

July 2004 Oct-05 EU25 average October 2005 Revised data for FR and PT Figure 30


12.40

11.74

13.65

15.75

20.54

18.81

13.96

16.57

18.46

18.73

18.76

14.74

17.28

10

12

14

16

18

20

22


€-ce

nts

per m

inut

e

SMP operators Non-SMP operators All operators Data for EU15 average have changed due to the revision of the IC rates in FR and PT.

Figure 31

Fixed-to-mobile national average interconnection charges EU15 weighted average (all operators, €-cents):

2005: 12.40 - 2004: 14.74 - 2003: 17.28

17.9

15.6

15.1

19.1

18.1

17.5

13.4

21.9

12.9

26.8

15.5

20.9

16.32

15.51

15.08

17.52

15.80

16.05

17.57

15.00

16.30

12.84

21.28

11.27

9.06

15.27

14.20

13.62 14

.86

13.49

12.89 13.43

12.59

15.00

13.72

12.41 13

.82

7.33 8.5

9

8.78

15.5

0

5

10

15

20

25

30


€-ce

nts

per m

inut

e

July 2003 July 2004 October 2005 EU15 average October 2005 Revised data for FR and PT. Data for FR in 2003 not comparable

Figure 32


13.00

12.83

12.50

12.10

8.91

8.28

13.40

13.20

13.15

13.01

13.00

10.98

10.86

10.51

10.43

8.59

8.40

6.80

2.16

13.18

12.90

12.54

9.28

11.41

0 5 10 15 20 25 30

DK (Sonofon) (+)


AT- T-Mobile(*)


HU-Vodafone (*)



IE-O2 (*)(+), Vodafone(*)(+)



FR-Orange(*)(+), FR- SFR(*)(+)


MT-Vodafone(*)(+)


AT- Mobilkom(*)

CZ-Eurotel Praha(+)(*), T-Mobile (+)(*), CeskyMobil



LV-Tele2(*), LMT(*)


FI-Elisa(*)


FI-Sonera(*)

CY-CYTA(*)(+)


Revised data for FR

Figure 33


16.59

15.00

14.50

18.20

17.26

15.98

21.84

17.78

16.59

15.00

14.79

14.47

13.90

13.80

13.51

14.70

14.76

15.17

18.04

19.50

20.27

21.00

14.35

14.90

0 5 10 15 20 25 30

SI- Si.mobil(*)(+)


BE- Base

EL- Q Telecom

PT- Optimus

SI- Mobitel(*)(+)

IE- Meteor(*)

EE-Tele2

PL- Centertel(*)(+), Polkomtel(*)(+), PolskaTelefonia Cyfrowa(*)(+)

BE- Mobistar (*)(+)

EE- EMT(+), Elisa




DE-Eplus, O2 (Viag)

FR- Bouygues Tlc(*)

HU-Pannon(*)

NL-Ben (T-Mobile), Orange (Dutchtone), O2 NL(Telfort)



IT-Wind





Revised data for FR

Figure 50


5.5

5.9

6.0

6.4

7.5

7.6

8.7

9.5

9.6

9.9

9.9

10.1

10.8

10.8

10.9

11.1

11.4

11.7

11.8

12.1

12.5

14.0

14.4

15.1

15.4

15.8

16.6

16.7

17.5

18.0

18.6

19.0

19.4

19.7

20.0

20.3

20.5

20.7

21.2

21.2

22.3

22.9

23.3

23.3

25.4

27.0

30.2

36.0

37.8

0 5 10 15 20 25 30 35 40














































UK, O2, O2 25 *




Euro per month

2005

2004


Figure 51


12.7

16.5

16.7

16.9

18.2

18.8

19.2

19.3

19.7

20.0

20.5

21.3

22.5

23.3

24.6

25.2

26.7

28.1

28.9

29.1

30.3

31.7

31.9

32.0

32.1

32.6

33.3

34.7

35.6

35.7

37.2

37.2

38.5

40.4

40.6

40.7

42.9

43.4

43.4

43.8

43.9

47.9

47.9

48.6

48.8

49.5

52.4

53.9

58.1

0 10 20 30 40 50 60 70


































UK, O2, O2 100 *
















Euro per month

20052004


Figure 52


20.0

30.4

30.9

32.1

33.2

33.3

34.5

37.4

37.6

39.0

40.7

43.8

45.1

45.3

46.4

46.7

50.9

51.5

51.5

52.1

53.6

54.1

55.1

55.7

56.3

57.1

57.2

58.1

59.3

59.8

61.0

64.1

65.2

66.2

68.6

70.3

71.3

71.8

72.9

72.9

76.3

78.7

82.6

83.1

87.0

89.2

92.8

94.4

98.8

0 20 40 60 80 100 120



















UK, O2, O2 200 *































Euro per month

20052004

Entries with an asterisk (*) after the name have changed the package name and structure since last year Data for Vodafone, Portugal have been modified.

The OECD Mobile baskets are calculated under the understanding that value allowances are used for voice calls only. As some tariffs have intended the allowance to cover both voice calls and messages this can result in overstating the SMS part of the basket beyond what the operator's billing system would do. Countries which may be affected are Belgium, Hungary, Ireland, Luxembourg and Portugal.

Figure 77

Minim

um cost of local and long-distance calls, incum

bent operator5.20

5.37

3.35

3.07

3.09

7.95

7.80

6.35

7.87

1.70

4.05

3.09

1.62

12.55

4.27

4.90

3.08

8.47

2.63

12.18

4.81

7.41

6.88

8.10

5.20

10.83

3.35

4.90

3.07

3.09

9.66

10.50

6.35

7.87

4.02

1.70

4.05

3.09

1.62

12.55

5.18

5.90

12.59

8.47

2.63

10.00

4.81

7.41

8.09

10.80

4.02

3.90

0 2 4 6 8 10 12 14

BE

CZ

DK

DE

EEEL

ESFR

IEIT

CY

LVLT

LUH

UM

TN

LAT

PLPT

SISK

FISE

UK

JPU

SA


Local calls 2005Long distance calls 2005

(60)

(45)

(60)

(300)

(60)

(60)

(30)

(60)

(25)

(60)

(60)

(160)

(60)

(300)

(60)

(60)

(60)

(180)

R


E, LT, MT, A

T and SI Figure 78

Minim

um cost of a call to a m

obile phone, incumbent operator

11.22

23.20

10.65

17.90

6.35

7.87

4.02

4.05

18.60

28.88

5.18

19.20

28.27

13.31

5.11

10.00

4.81

7.41

8.09

8.10

22.07

1.70

18.23

3.07

3.35

1.62

0 5 10 15 20 25 30 35

BE

CZ

DK

DE

EEEL

ESFR

IEIT

CY

LVLT

LUH

UM

TN

LAT

PLPT

SISK

FISE

UK

JPU

SA


(60)

(30)

(60 min.)

(30)

(60)

(60)

(60)

(60)

(12)

(26)

R


E, LT, MT, A

T and SI

Figure 79

Minim

um cost of an international call

27.2

19.0

37.6

12.1

0.0

6.6

4.9

10.4

3.1

0.5

13.8

12.0

6.3

31.0

4.0

1.7

4.1

20.6

1.6

10.4

36.0

65.8

12.1

11.4

10.0

4.8

7.4

61.5

25.9

0.4

12.33.4

10.4

18.0

13.7

79.0

47.5

0 10 20 30 40 50 60 70 80

BE

CZ

DK

DE

EEEL

ESFR

IEIT

CY

LVLT

LUH

UM

TN

LAT

PLPT

SISK

FISE

UK

USA

JP


Near

Distant

MT not to scale

Value: 215.55

R

evised data for AT

Figure 81

Business m

onthly rental

13.9

12.9

12.8

13.5

6.5

10.5

13.2

8.7

8.6

6.9

16.0

14.2

13.2

15.3

18.9

10.3

12.7

8.9

9.1

10.1

12.4

20.3

14.9

19.1

14.2

16.8

13.8

11.9

12.1

6.9

16.0

14.2

13.2

15.3

18.9

10.3

12.98

8.9

9.1

10.1

12.4

20.3

13.8

18.4

13.1

20.0

17.0

12.8

6.5

13.2

8.6

13.1

20.0

15.3

0 5 10 15 20 25

BE

CZ

DK

DE

EEEL

ESFR

IEIT

CY

LVLT

LUH

UM

TN

LAT

PLPT

SISK

FISE

UK

USA

JP

€, VAT excluded

Aug 2004

Sep 2005

EU

25 Sep 2005

Line rental for B

usiness PSTN in PT has been corrected

Figure 101

10 min. call to near EU

country

0.77

0.99

1.75

2.12

2.24

2.30

2.91

2.52

2.72

2.77

3.76

4.07

3.41

0.58

0.67

0.85

1.23

1.37

1.53

1.54

1.90

1.90

1.98

2.12

2.27

2.30

2.49

2.52

2.72

2.81

3.83

4.07

5.95

3.08

1.23

0.58

0.80

0.92

1.37

1.53

1.54

1.47

1.90

1.77

1.98

1.59

0.77

0.99

1.25

1.80

0.0

1.0

2.0

3.0

4.0

5.0

6.0

SEC

YD

KN

LEE

DE

SILU

ESIE

MT

CZ

ATFI

BE

ITFR

HU

ELU

KSK

PTPL

LTLV

€, including VAT

20042005

EU

25 Average


odified Figure 102

10 min. call to distant EU

country

1.75

3.50

2.12

3.06

5.75

3.79

3.76

3.97

4.06

4.07

4.77

5.95

8.06

0.66

1.37

1.53

2.08

2.22

2.46

2.49

2.92

2.97

3.10

3.11

3.42

3.79

3.83

3.87

4.06

4.07

4.90

6.80

8.18

2.75

3.26

1.00

2.06

1.53

2.20

2.45

2.91

2.71

2.92

2.97

3.10

2.71

1.40

1.97

2.12

2.75

0 1 2 3 4 5 6 7 8 9

CY

LUSI

ESC

ZU

KIT

FRD

EEL

BE

HU

NL

SKAT

PTEE

SEPL

IED

KLT

FILV

MT

€, including VAT

20042005

EU

25 Average


odified

Figure 103

10 min. call to U

SA

1.06

1.37

1.53

2.38

2.41

2.91

2.97

3.06

2.75

3.76

4.77

5.95

0.66

0.85

1.23

1.40

1.78

1.90

1.90

2.08

2.12

2.27

2.38

2.56

2.93

2.97

3.11

3.36

3.83

4.07

4.90

5.95

2.24

2.12

2.07

3.50

1.90

1.90

1.65

1.23

0.85

0.80

1.75

1.98

4.07

1.98

1.53

1.37

1.06

1.97

0 1 2 3 4 5 6

CY

NL

SED

ELU

SIES

MT

ATIE

CZ

BE

UK

ITFR

DK

EEEL

SKPT

HU

PLLT

FILV

€, including VAT

20042005

EU

25 Average


odified Figure 104


6.23

3.42

3.60

6.58

6.71

7.90

8.58

8.78

9.08

12.48

16.01

22.60

2.93

3.50

3.71

3.87

4.98

5.70

5.72

5.95

6.66

6.71

7.90

8.58

8.78

9.08

12.69

16.01

20.25

22.60

5.95

6.77

5.57

5.20

4.98

5.77

3.71

2.91

1.37

2.40

3.50

7.68

20.12

1.37

0.82

5.64

3.60

3.42

1.48

5.20

0 5 10 15 20 25

CY

LUU

KEL

SEN

LAT

SKC

ZFR

BE

ESFI

SILV

PLH

UD

EIE

ITD

KPT

EEM

TLT

€, including VAT

20042005

EU

25 Average


odified

Figure 114


116

981

103

842

108

273

226

196

135

541

272

954

231

720

419

255

262

348

77

607

64

124

194

400

214

974

168

073

305

366

179

040

88

951

380

035

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000

BE DK DE EE EL ES FR IE IT CY LT HU AT PT SI UK USA-NY

USA-CA

JP

€ pe

r yea

r, VA

T ex

clud

ed

2004 2005 EU15

Country acronyms have been changed to reflect correct prices in AT, PT, SI, UK, USA and JP

EN 2 EN

EN 3 EN

ANNEX 2

MARKET OVERVIEW

SOURCES OF DATA PRESENTED IN THIS ANNEX

Figures in sections 1 (players in the fixed market), 2 (consumers’ choice of fixed operators), 3 (public network

interconnection charges), 4 (mobile operators), 5 (Volumes of traffic), 6 (number portability) and 7 (broadband access

pricing) were provided by the National Regulatory Authorities (NRAs) in response to a questionnaire on regulatory

market data sent by the Commission in June 2005.

Data on mobile subscribers (section 4) refer to the June or October 2005 and come from the NRAs unless otherwise

specified.

Data in section 7 on broadband lines are provided by the NRAs and the national ministries through the Electronic

Communications Committee (COCOM). Data have been collected since July 2002 three times a year, in January, June

and October. The figures in this report refer to 1 October 2005 unless otherwise specified.

Information in sections 8 & 9 (PSTN and retail leased lines prices) is taken from a study carried out for the Commission

by Teligen-HI Europe. These data are collected from primary sources (i.e. directly from the incumbent operators and

new entrants) and checked by the NRAs. All NRAs, with the exception of Cyprus and Slovakia, provided comments

and approved these data.

A draft version of the charts in this annex (exc. Sections 8 & 9) was distributed to the NRAs before this report was

finalised, and a validation meeting with representatives from NRAs and National Ministries took place in November

2005.

EN 4 EN

EN 5 EN

EN 6 EN

TABLE OF CONTENTS

1 PLAYERS IN THE FIXED MARKET............................................................................................... 8

1.1. PLAYERS IN THE FIXED MARKET .................................................................................................. 8

1.2. PUBLIC FIXED NETWORK OPERATORS ........................................................................................ 9

1.3. PUBLIC FIXED VOICE TELEPHONY OPERATORS........................................................................ 9

1.4. INCUMBENTS’ MARKET SHARE IN THE FIXED VOICE TELEPHONY MARKET.................. 13

1.5. PUBLIC OWNERSHIP OF THE INCUMBENT OPERATOR........................................................... 21

2 CONSUMERS’ CHOICE OF FIXED OPERATORS..................................................................... 22

2.1. PERCENTAGE OF SUBSCRIBERS ACTUALLY USING AN ALTERNATIVE PROVIDER OTHER

THAN THE INCUMBENT.................................................................................................................. 22

2.2. FACILITIES USED BY NEW ENTRANTS FOR THE PROVISION OF VOICE TELEPHONY .... 24

3 PUBLIC NETWORK INTERCONNECTION ................................................................................ 28

3.1. FIXED-TO-FIXED INTERCONNECTION CHARGES..................................................................... 28

3.2. FIXED-TO-MOBILE INTERCONNECTION CHARGES ................................................................. 32

3.3. LEASED LINES INTERCONNECTION CHARGES......................................................................... 38

4 MOBILE MARKET........................................................................................................................... 44

4.1. 2G MOBILE PENETRATION............................................................................................................. 44

4.2. PLAYERS IN THE MOBILE MARKET............................................................................................. 47

4.3. 3GPLAYERS........................................................................................................................................ 48

4.4. 2G OPERATORS’ MARKET SHARES.............................................................................................. 49

4.5. MOBILE BASKET............................................................................................................................... 51

5 NUMBER PORTABILITY................................................................................................................ 56

5.1. FIXED NUMBER PORTABILITY...................................................................................................... 56

5.2. MOBILE NUMBER PORTABILITY.................................................................................................. 57

6 BROADBAND ACCESS AND PRICING ........................................................................................ 58

6.1. BROADBAND ACCESS DEFINITIONS ........................................................................................... 58

6.2. WHOLESALE ACCESS...................................................................................................................... 59

6.3. RETAIL BROADBAND ACCESS...................................................................................................... 61

6.4. PRICES FOR UNBUNDLED LOCAL LOOP..................................................................................... 70

7 PUBLIC VOICE TELEPHONY TARIFFS ..................................................................................... 76

7.1. CHARGING SYSTEM......................................................................................................................... 76

7.2. MONTHLY RENTAL CHARGED BY THE INCUMBENT OPERATORS...................................... 79

7.3. AVERAGE MONTHLY EXPENDITURE (COMPOSITE CALL BASKET) .................................... 80

7.4. PRICE OF FIXED NATIONAL CALLS BY THE INCUMBENT OPERATOR ............................... 81

7.5. TREND OF THE BASKET FOR FIXED NATIONAL CALLS (NATIONAL BASKET)................. 84

7.6. PRICE OF FIXED NATIONAL CALLS BY ALTERNATIVE OPERATORS.................................. 85

7.7. INCUMBENT OPERATOR PRICE FOR AN AVERAGE FIXED INTERNATIONAL CALL

(INTERNATIONAL CALL BASKET)................................................................................................ 87

7.8. INCUMBENT OPERATOR PRICE OF CALLS TO EU, JAPAN, USA............................................ 89

7.9. ALTERNATIVE OPERATORS’ PRICE FOR FIXED INTERNATIONAL CALLS......................... 92

8 LEASED LINES RETAIL TARIFFS ............................................................................................... 94

8.1. INCUMBENTS' NATIONAL LEASED LINES.................................................................................. 94

8.2. NATIONAL LEASED LINES PRICE TRENDS (1 AUGUST 1998 - 1 SEPTEMBER 2005)......... 101

8.3. INTERNATIONAL LEASED LINES PRICES ................................................................................. 102

8.4. INTERNATIONAL LEASED LINES PRICE TRENDS (1 AUGUST 1998 - 1 SEPTEMBER 2005)108

9 EXCHANGE RATES ....................................................................................................................... 110

9.1. EXCHANGE RATE USED IN SECTION 5 ON THE MOBILE BASKET, SECTION 8 ON PUBLIC

VOICE TELEPHONY TARIFFS AND SECTION 9 ON LEASED LINE TARIFFS....................... 110

9.2. EXCHANGE RATE USED IN ALL THE OTHER SECTIONS....................................................... 113

10 OECD TELECOMMUNICATIONS BASKET DEFINITIONS .................................................. 116

10.1. NATIONAL PSTN BASKET............................................................................................................. 116

10.2. INTERNATIONAL PSTN BASKET................................................................................................. 117

10.3. COMPOSITE NATIONAL – INTERNATIONAL BASKET............................................................ 117

10.4. NEW OECD MOBILE BASKETS..................................................................................................... 118

EN 7 EN

EN 8 EN

1. PLAYERS IN THE FIXED MARKET

1.1. PLAYERS IN THE FIXED MARKET

This section looks at the number of fixed telecommunications operators (fixed voice telephony and network services) in

the market. It includes data on the number of notified fixed network operators and public fixed voice telephony

operators, the estimated number of players actually active in the market and the incumbents’ market shares in the fixed

voice telephony market.

Data on operators were provided by the national regulatory authorities and refer to September 2005. The figures include

a variety of operators: fixed network operators, service providers, cable operators as well as wireless local loop, and

mobile and satellite operators for the fixed part of their networks and services. Data on the incumbents’ market shares in

the fixed voice telephony market refer to the end of 2004.

Under the new regulatory framework for electronic communications, operators are only subject to a general

authorisation regime. Undertakings may be required to submit a notification but may not be required to obtain an

explicit decision or any other administrative act. Granting of individual rights of use is required only for scarce

resources such as radio spectrum or numbers.

Given the above, the quality of the information provided by the NRAs on the number of operators is variable, and while

a number of NRAs are able to provide very detailed information on the number and characteristics of their national

operators, other NRAs no longer have precise information. Therefore, the overall figures on the number of operators

should be considered as estimates.

Data show that there has been an increase, both in the number of notified operators as well as in the number of operators

actually providing services. At EU25 level, 388 new voice telephony operators have been notified. Almost 50% of the

1996 notified operators were actually providing services (985 operators). In the new Member States (NMS), where the

liberalisation process started later than in the EU15, competition is still at an early stage and largely concentrated in the

international calls market. With a few exceptions, the national incumbent operator still retains more than 90% of the

fixed telephony market.

The total number of major competing operators (i.e. operators that along with the incumbent operator have a combined

market share of at least 90% of the global telephony market;) in the EU is around 84. Only in 7 Member States there are

more than 5 major competing operators (Figure 5).

Figure 1

Estimated number of fixed operators in EU25 & EU15

1534

2495

1237

900

12021231635

1239

1352

1738

1561

526

1484

945

1237

15831981

1608

1996

2141

500

1 000

1 500

2 000

2 500

3 000

1998 1999 2000 2001 2002 2003 2004 2005

EU15 Public voice telephony EU15 Public network

EU25 Public voice telephony EU25 Public network

Source: Commission services based on NRA data.

EN 9 EN

1.2. PUBLIC FIXED NETWORK OPERATORS

The chart below shows the estimated number of network operators. Public network operators are defined as operators

that install, manage and operate a telecommunications transmission network to provide public telephony services or

public network services in the whole national territory, whatever the geographical scope of the service. Data do not

include service resellers.

As at September 2005 there were a total of 2495 network operators in the EU.

Figure 2

Estimated number of notified public fixed network operators

Total EU25: 2495 - Total EU15: 1981

48

437

12 16

293

222

40

80

5

176

3614 15

2

186

9268

25 2536

85

238

164

41

139

0

50

100

150

200

250

300

350

400

450

500


Denmark: The number of operators authorised to offer public voice telephony has been estimated using the number of

allocated access codes. All providers offer nationwide services.

Finland: 39 network operators are local incumbents and belong to the Finnet Group. 3 network operators belong to the

Elisa Group and 2 others to TeliaSonera.

France: Of the 222 operators declared, 170 are in a test phase

United Kingdom: The figure corresponds to the number of companies recorded in the voluntary register for

communications providers.

1.3. PUBLIC FIXED VOICE TELEPHONY OPERATORS

Public fixed voice telephony is defined as a service available to the public for the direct transport on a commercial basis

of real-time speech via the public switched network, such that any user can use equipment connected to a network

termination point at a fixed location to communicate with another user of equipment connected to another termination

point. Voice telephony could be provided by operators on an own self-operated network or on a leased network. In the

first case, the operator provides voice telephony over a network fully controlled, operated and (wholly or partially)

owned by it; in the second case the operator operates, controls and manages the transmission capacity leased from

another operator. Simple call-back and calling card services as well as operators dealing only with marketing, billing,

etc., are excluded. The definition of service provider may differ from that used in the national law of individual

countries (in some countries non-self operated network operators engage exclusively in reselling activities).

EN 10 EN

Figure 3

Estimated number of notified public fixed voice telephony operators

Total EU25: 1996 - Total EU15: 1534

32

76

34

261

1724

239

126

29

94

27

91

58

13

69

1

106

159

69

22 18

36

71

160 164

0

50

100

150

200

250

300


Denmark: Estimated based on the number of allocated access codes. All providers offer nationwide services.

Finland: 40 operators are local incumbents and belong to the Finnet Group. 3 network operators belong to the Elisa

Group and 2 others to TeliaSonera.

France: The implementation of a notification system has revealed an increase in the number of voice service providers.

Cyprus: The figure includes all types of service providers

United Kingdom: The figure corresponds to the number of companies recorded in the voluntary register for

communications providers.

The number of notified operators only indicates the potential for competition in the market rather than the actual level

of competition. For this reason, where possible, an estimate is given of the number of operators that are active in the

market. The following chart shows the estimate of the number of operators active in the voice telephony market at

September 2005. Figures do not distinguish between local and national operators.

Some operators only offer international calls, while others also offer national and local calls. Figures represent the

maximum number of active operators in each country.

Figure 4

Number of operators actually offering public voice telephony, September 2005

127

51

141214

69

40

106

66

10

32

16

3435

1317

44

122

59

16

16

17

2935

0

20

40

60

80

100

120

140


The chart includes cable TV operators that also provide voice telephone services

Netherlands: Data refer to the number of authorised fixed operators. Cyprus: The figure includes all type of service providers.

EN 11 EN

Denmark: Minimum figure based on the number of operators known to the NRA. The figure includes all type of service providers and therefore

exceeds the number of operators with access code. Austria: Only operators that gave information on operating revenues for local/national/ international call services. Data from 30/09/2003

Spain: Data from 2004

Sweden: 50 approx. for voice.

Many new entrants concentrate on specific segments of the market or limit their activity to specific geographic areas,

thus having a limited impact on the national market as a whole. To get an idea of the number of fixed operators that are

effectively competing with the incumbent at national level, the following charts show, for each country, the number of

operators that have a combined market share, based on revenues, of at least 90% on the total voice telephony market

including all types of calls (Local calls to internet, local phone calls, long-distance and international calls as well as

calls to mobile). Only 7 countries have more than 5 competing operators (including the incumbent) with such a

combined market share. These figures give an idea of the number of major players operating in each national market,

although in many cases, competition is largely asymmetric, with incumbents continuing to hold a strong position. This

situation can be observed in the New Member States, where the fixed incumbent still dominates the fixed voice market.

Figure 5

Number of the major competing players in the

fixed telephony market, September 2005

8

3

7

12

3

6

0

4

1 1

2

1

2

6

3 3

1 1

3

10

11

4

1

4

0

2

4

6

8

10

12

14


n.a

.

*

Operators that along with the incumbent operator have a combined market share of at least 90% of the voice market

* In Hungary there are 5 fixed incumbent operators, each of them former local monopolies in their primary areas.

Ireland: Confidential information Finland: The figure includes the major operators only.

EN 12 EN

Figure 6

Incumbent's market share (by revenues) and number of operators with a combined 90%

market share of fixed calls at the end of 2003

DK, 63%

CY, MT, SI, SK, 100%

FI, 93%

SE, 54%UK, 56%

BE, 73%

DE, 62%

EL, 85%

ES, 81%

FR, 74%

IE, LU, 83%

IT, 67%

LV, 94%

LT, 97%

HU

AT, 55%

PL, 89%

PT, 83%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

0 1 2 3 4 5 6 7 8 9 10 11 12

Number of operators with a combined 90% market share of fixed calls

Incumbent's fixed calls m

arket share (all

fixed calls inc. Internet)

Data for the Netherlands not available. Data on market shares for Estonia and Czech Republic are confidential.

Belgium: No distinction between local and national calls

Denmark, Luxembourg: Market share based on minutes, not on revenues. Slovakia: Only the incumbent operator was actually providing services.

Finland: The 3 incumbent groupings hold 93.4% of voice market

Sweden: Figure includes VoIP players Hungary: There are 5 fixed incumbent operators, each of them former local monopolies in their primary areas. The level of competition in these 5

fixed traffic markets was not significant yet.

Portugal: Data on market shares exclude calls to the Internet

Figure 7

Incumbent's market share (by revenues) and number of operators with a combined 90%

market share of fixed calls at the end of 2004

BE, 63%

DK, 61%

ES, 79%

LV, LT, 93%

PL, 83%

DE, 57%

EL, 76%

FR, 72%

IT, 66%

CY, 97%

LU, 80%

HU, 96%

MT, SK, 100%

NL, 75%

AT, 55%

PT, 79%

SI, 98%

FI, 95%

UK, 51%50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

0 1 2 3 4 5 6 7 8 9 10 11 12

Number of operators with a combined 90% market share of fixed calls

Incumbent's fixed calls m

arket share (all

fixed calls inc. Internet)

Data for Portugal do not include calls to the Internet Data on market shares for Estonia, Sweden and Czech Republic are confidential. Data on competing players in Ireland is confidential.

Denmark, Luxembourg: Market share based on minutes, not on revenues.

Austria: Values on market share are estimates based on data from Q4/2004 Slovakia: Competition by means of CS only started in August 2005.

Finland: The 3 incumbent groupings hold 95% of the fixed voice market

Hungary: There are 5 fixed incumbent operators, each of them former local monopolies in their primary areas. The figure on market share refers to 2003.

United Kingdom: Data on market shares refer to Q1/2005.

EN 13 EN

1.4. INCUMBENTS’ MARKET SHARE IN THE FIXED VOICE TELEPHONY

MARKET

This section shows the incumbents’ market share in the fixed voice telephony markets on the basis of both retail

revenues and outgoing minutes of traffic. Where possible, figures for local, long-distance, international call, calls to

mobile and calls to internet are shown. Not all Member States collect both types of data, and differentiation between the

various markets is not always available.

Figures in this section have been provided by NRAs and refer to December 2004, except for United Kingdom (March

2005).

The following charts show the trend for the EU15 and EU25 weighted average of the incumbent’s market share in the

major segments of the voice telephony market since 2000 and 2003 based on retail revenues.

Given that data was not available for all countries and for all types of calls, the average EU15 figure should be

considered as indicative. The figure for the local calls market is an average of countries that represent more than 90% of

the EU15 population; data for calls to mobile represent 97% of the EU15 population in 2004, around 94% for the period

2003-2001 and 90% in 2000; data for long distance and international calls represent more than 96% of the EU15

population for all the periods considered.

Figure 8

EU15 incumbents' average market share on the voice telephony market (based on market

shares of revenues)

86.5%

75.3%

71.2%

67.3%

74.2%

71.1% 67.0%

65.0%

79.4%

72.3%

69.8%

65.7%

61.8%

65.1%

66.2%

62.3%

58.0%54.9%

40%

50%

60%

70%

80%

90%

Dec. 2000 Dec. 2001 Dec. 2002 Dec. 2003 Dec. 2004

Local calls Long-distance calls Calls to mobile International callsSource: Commission services based on NRA data.

Countries not included in each data point

Dec. 2000: Local: DK, DE, PT, SE; Long distance: PT; Mobile:DK, EL, LU, PT, SE; International:DK, PT, SE Dec. 2001: Local: DK, PT, SE; Long distance: PT; Mobile: DK, LU, PT; International: PT

Dec. 2002: Local: DK, PT, SE; Mobile: DK, LU

Dec. 2003: Local: DK, LU, PT, SE; Long distance: DK, LU, SE; Mobile: DK, FI; International: DK Dec. 2004: Local: DK, LU, PT, SE; Long distance: DK, LU, SE; Mobile: DK, FI; International: DK

EN 14 EN

Figure 9

EU25 incumbents' average market share on the voice telephony market (based on market

shares of revenues)

70.9%

74.4%

70.6%

68.5%67.5%

64.0%

59.0%

62.6%

55%

60%

65%

70%

75%

80%

Dec. 2003 Dec. 2004

Local calls Long-distance calls Calls to mobile International callsSource: Commission services based on NRA data.

Countries not included in each data point

Dec. 2003: Local: DK, LU, PT, SE, CZ, EE, LT; Long-distance: DK, LU, SE, EE, LT, MT; Mobile: DK, FI, EE, HU, LT; International: DK, E, LT

Dec. 2004: Local: DK, LU, PT, SE, CZ, EE; Long-distance: DK, LU, SE, EE, MT; Mobile: DK, FI, EE; International: DK, EE

EN 15 EN

The following two charts show the incumbents’ market share in the local, long-distance and international calls market

by retail revenues and by minutes of outgoing traffic. The local calls market includes both local phone calls and local

calls to internet.

Figure 10

Incumbents' market share in the national fixed telephony market

(Retail revenues-Dec. 2004)

73.0%

57.0%

82.1%

76.8%

78.9% 84.0%

68.6%

99.0%

97.8%

99.3%

100.0%

75.0%

53.0%

88.8%

0.0%

100.0%

100.0%

95.0%

54.0%

73.0%

59.0%

74.6%

66.9%

87.0%

67.9%

98.6%

90.5% 95.7%

73.0%

76.9%

100.0%

100.0%

54.4%

46.5%

40.0%

68.6%

66.1%

65.7%

69.0%

56.8%

73.7%

81.3% 88.3%

100.0%

45.0%

53.0%

78.5%

81.5%

90.9%

100.0%

41.0%

54.4%

75.0%

79.3%

45.0%

72.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

BE DE EL ES FR IE IT LV LT HU MT NL AT PL PT SI SK FI UK

Local calls Long-distance calls International calls

Data for local calls include calls to the internet

Belgium and Slovenia: No distinction between local and national calls Czech Republic, Estonia, Luxembourg, Sweden: Confidential data

Denmark: Figures not available. No distinction between local and long-distance calls

Greece: Figures published in previous reports include revenues from calls to short codes and retail calling party revenues from shared cost calls France: Data on local and long-distance calls are NRA estimates

Cyprus: Data not available

Lithuania: Data do not include some alternative operators that cannot split revenues by type of service. The actual market share of the incumbent operator is lower.

Luxembourg: Data on revenues are confidential.

Malta: No distinction between local and national calls. No long-distance calls The Netherlands: Figures are very rough estimates

Austria: Estimates based on data from Q4/2004 Finland: Estimates based on incomplete data.

Portugal: Long-distance calls include local calls

United Kingdom: Market shares for the quarter to March 2005.

EN 16 EN

Figure 11

Incumbents' market share in the national telephony market

(Minutes of traffic-Dec. 2004)

66.7%

0.0%

44.0%

85.6%

88.1%

71.0%

72.4%

83.0%

68.9%

99.4%

98.9%

82.0%

99.3%

100.0%

65.0%

61.0%

90.2%

0.0%

100.0%

100.0%

94.0%

62.0%66.7%

55.0%

85.6%

69.3%

54.5%

69.0%

68.9%

89.7%

89.7%

65.0%

78.0%

78.3%

100.0%

100.0%

38.0%

49.5%

32.3%

48.4%

33.0%

58.9%

55.8%

53.9% 61.0% 67.0%

67.7%

76.4%

71.0%

84.2%

100.0%

35.0%

43.0%

71.4% 77.4%

88.0%

100.0%

34.0%

33.9%

98.95%

98.95%

66.0%

64.7%

94.5%

95.47%

41.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

BE DK DE EE EL ES FR IE IT CY LV LT LU HU MT NL AT PL PT SI SK FI UK

Local calls Long-distance calls International calls

Data for local calls include calls to the internet.

Belgium, Estonia, Cyprus, Luxembourg, Slovenia: No distinction between local and national calls

Czech Republic, Sweden: Confidential data. Denmark: Detailed data are unavailable. Only a figure for the whole national fixed calls market, including internet, is available (61.36%).There is no

distinction between local and long-distance calls

Greece: Figures published in previous reports include revenues from shared cost calls and freephone calls Lithuania: NRA estimates.

Malta: No distinction between local and national calls. No long-distance calls

The Netherlands: Figures are very rough estimates Austria: Estimates based on data from Q4/2004

Finland: The figure for local calls is an estimate based on incomplete data. The figure on long-distance calls refers to TeliaSonera only and is an

estimate based on incomplete data. The figure for international calls refers to TeliaSonera only.

United Kingdom: Market shares for the quarter to March 2005.

EN 17 EN

The following charts show the incumbents’ market share in the local calls market by retail revenues and by minutes of

outgoing traffic. Where possible, separate figures for local phone calls and local calls to internet are provided.

Figure 12

Incumbents' market share in the local market

(Retail revenues- Dec. 2004)

0.0%

38.0%

98.6%

90.3%

67.4%

94.0%

0.0%

0.0%

98.5%

100.0%

100.0%

100.0%

92.5%

60.0%

85.8%

100.0%

100.0%

0.0%

44.0%

75.0%

79.1%

73.3% 79.9%

78.0%

99.0%

97.6%

98.9%

49.0%

89.3%

100.0%

59.7%

73.0%

57.0%

82.1%

76.8%

78.9% 84.0%

68.6%

99.0%

99.0%

97.8%

99.3%

100.0%

75.0%

53.0%

88.8%

100.0%

100.0%

95.0%

54.0%

100.0%

100.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

BE DE EL ES FR IE IT CY LV LT HU MT NL AT PL SI SK FI UK

Local calls to Internet Local phone calls All local calls

Belgium, Cyprus, Slovenia: No distinction between local and national calls

Czech Republic, Estonia, Luxembourg, Sweden: Confidential data. Denmark: Figures not available. No distinction between local and long-distance calls

Greece: Figures published in previous reports include revenues from calls to short codes and retail calling party revenues from shared cost calls.

France: Figure on calls to the Internet only includes metered traffic. Data on local calls are NRA estimates. Lithuania: Data do not include some alternative operators that cannot split revenues by type of service. The actual market share of the incumbent

operator is lower

Malta: No distinction between local and national calls. No long-distance calls The Netherlands: Figures are very rough estimates.

Austria: Estimates based on data from Q4/2004

Portugal: Information on local calls is not available. Finland: Estimate based on incomplete data. Information on local calls to the Internet is not available.

United Kingdom: Market shares for the quarter to March 2005. Figure on local calls to the Internet refers to special local rate calls and includes some

voice traffic.

EN 18 EN

Figure 13

Incumbents' market share in the local market

(Minutes of traffic- Dec. 2004)

0.0%

29.0%

89.9%

99.7%

70.5%

52.2%

92.0%

35.5%

99.9%

99.4%

100.0%

78.5%

99.9%

100.0%

55.0%

70.0%

86.9%

99.4%

100.0%

100.0%

0.0%

79.5%

78.0%

73.0%

75.2%

73.0%

98.4%

98.9%

100.0%

75.0%

56.4%

66.7%

88.1%

71.0%

72.4%

83.0%

68.9%

99.3%

99.4%

98.9%

82.0%

99.3%

100.0%

65.0%

100.0%

100.0%

94.0%

62.0%

66.0%

99.4%

90.2%

43.0%

100.0%

98.5%

84.4%

100.0%

44.0%

85.6%

61.0%

90.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

BE DE EE EL ES FR IE IT CY LV LT LU HU MT NL AT PL PT SI SK FI UK

Local calls to Internet Local phone calls All local calls

Belgium, Estonia, Cyprus, Luxembourg, Slovenia: No distinction between local and national calls

Czech Republic, Sweden: Confidential data.

Denmark: Figures not available. No distinction between calls to internet and local phone calls Greece: Figures published in previous reports include revenues from shared cost calls and freephone calls

France: Figure on calls to the Internet only includes metered traffic.

Lithuania: NRA estimates. Malta: No distinction between local and national calls. No long-distance calls

The Netherlands: Figures are very rough estimates.

Austria: Estimates based on data from Q4/2004 Portugal: Only the information on local calls to the Internet is available

Finland: Estimate based on incomplete data. Information on local calls to the Internet not available.

United Kingdom: Market shares for the quarter to March 2005. Figure on local calls to the Internet refers to special local rate calls and includes some voice traffic and FRIACO calls to OLO ISPs.

EN 19 EN

The following charts show the incumbents’ market share in the overall fixed market by retail revenues and by minutes

of outgoing traffic, and the market share for fixed calls to mobile networks.

Figure 14

Incumbents' market share in the fixed telephony market

(Dec. 2004)

63.1%

57.0%

75.6%

79.0%

71.5% 79.0%

65.9%

97.2%

92.6%

92.8%

96.4%

55.0%

98.4%

100.0%

50.8%

61.4%

60.9%

48.0%

83.7%

84.9%

70.0%

67.1%

76.0%

62.3%

97.1%

95.7%

96.8%

97.8%

100.0%

65.0%

60.0%

86.7%

83.7%

99.6%

100.0%

56.8%

100.0%

82.9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

BE DK DE EE EL ES FR IE IT CY LV LT HU MT NL AT PL PT SI SK UK

by retail revenues by minutes of traffic

Belgium, Cyprus, Luxembourg, Slovenia: No distinction between local and national calls

Czech Republic, Sweden: Confidential data. Estonia: Data on revenues are confidential.

Greece: Figures on revenues published in previous reports include revenues from calls to short codes and retail calling party revenues from shared

cost calls. Figures on traffic published in previous reports include revenues from shared cost calls and freephone calls Lithuania: Data do not include some alternative operators that cannot split revenues by type of service. The actual market share of the incumbent

operator is lower. Data on traffic are NRA estimates.

Luxembourg, Finland : Data not available The Netherlands: Figures are very rough estimates.


Portugal: Data on revenues is not available. United Kingdom: Market shares for the quarter to March 2005. Figures

EN 20 EN

Figure 15

Incumbents' market share in the calls to mobile market

(Dec. 2004)

61.8%

0.0%

71.6%

66.6%

97.9%

96.1%

65.0%

77.9%

0.0%

45.1%

62.3%

78.1%

66.5%

68.8%

97.7%

84.2% 89.3%

77.9%

33.0%

100.0%

65.6%

96.1%

78.7%

100.0%

51.0%

100.0%

94.0%

78.0%

68.0%

61.0%

54.3%

67.4%

100.0%

76.8%

95.8%

69.0%

100.0%

50.0%

65.0%

100.0%

83.0%

71.0%

57.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

BE DE EE EL ES FR IE IT CY LV LT LU HU MT NL AT PL PT SI SK FI UK

by retail revenues by minutes of traffic

Czech Republic, Sweden: Confidential data.

Denmark: Figures not available

Estonia: Data on revenues are confidential. Lithuania: Data do not include some alternative operators that cannot split revenues by type of service. The actual market share of the incumbent

operator is lower. Data on traffic are NRA estimates.

Luxembourg: Data on revenues are confidential. The Netherlands: Figures are very rough estimates.


Finland: Data on revenues not available. United Kingdom: Market shares for the quarter to March 2005.

EN 21 EN

1.5. public ownership of the incumbent operator

The chart below shows the share of state ownership in the incumbent operators in 2004 and 2005. Only in Cyprus and

Luxembourg is the incumbent fixed operator fully state owned. In seven countries the incumbent is fully privatised

(Czech Republic, Denmark, Spain, Ireland, Italy, Hungary and the United Kingdom), although in some cases a golden

share mechanism exists. In most other countries the state ownership is still significant at around 40%, with 4 countries

(Belgium, Latvia, Malta and Slovenia) where the State owns more than 50% of shares.

Figure 16

State ownership in the incumbent operators, August 2004 - September 2005

34%

46%

19%

47%

42%

43%

51%

51%

0 0 0

6%

0

6%

00 49%4%

21%

60%2%

51%

36%

27%

38%

100%

100%

45%

14%

72%

7%

30%

35%

050%

0%

20%

40%

60%

80%

100%

BE

-Belg

acom

CZ-C

esky T

ele

com

DK

-Tele

Denm

ark

DE

-Deuts

che

Tele

kom

EE

-Elio

n E

ttevotted

AS

EL-O

TE

ES-T

ele

fonic

a

FR

-Fra

nce T

ele

com

IE-E

ircom

IT-T

ele

com

Ita

lia

CY-C

yta

LV

-SIA

Lattele

kom

LT-L

ietu

vos

Tele

kom

as

LU

-P&T L

uxem

bourg

HU

-Mata

v

MT-M

altacom

plc

NL-K

PN

AT-T

ele

kom

Austria

AG

PL-T

ele

kom

unik

acja

Pols

ka S

.A.

PT-P

T S

.A.

SI-Tele

kom

Slo

venije

SK

-Slo

vak T

ele

com

,

a.s

.

FI-Telia

Sonera

SE

-Telia

Sonera

UK

-BT

August 2004 September 2005

Belgium: 50% + 1 share France: Approx.

Estonia: The Estonian Government owns 27.28% of Estonian Telecom, which is 100% owner of Elion Ettevotted AS

Hungary: The figure refers to Magyar Telekom Rt. The Hungarian State keeps one golden share. Netherlands: The State had 14.2% of shares in KPN as at 1 November 2005. The Dutch State has one golden share.

Poland: No golden share

Portugal: The Portuguese State has a golden share in Portugal Telecom

EN 22 EN

2. CONSUMERS’ CHOICE OF FIXED OPERATORS

This section analyses the fixed voice telephony market from the point of view of consumers.

The data presented below have been provided by the national regulatory authorities and, unless otherwise indicated,

report the position as at September 2005. Figures for countries not included in the charts are not available. Figures are

not always comparable with those published in previous reports due to changes in the methodologies and/or in the

classifications used by the Member States. Most Member States revised their methodologies in 2004 resulting in lower

figures than those reported in previous reports for both local calls and long-distance/international calls.

Information on consumers’ use of alternative providers is unavailable in a number of New Member States.

2.1. PERCENTAGE OF SUBSCRIBERS ACTUALLY USING AN ALTERNATIVE

PROVIDER OTHER THAN THE INCUMBENT

Incumbents’ customers are more and more aware of the possibility of using an alternative provider, either by dialling a

call-by-call prefix (carrier selection) or by choosing to route all calls by default to the network of an alternative

operator (carrier pre-selection). The use of an alternative operator through carrier selection/carrier pre-selection does

not exclude the possibility of also using the incumbent’s services. Direct access is also available to users through

alternative operators’ proprietary wireline/wireless access or through unbundled local loops leased from the incumbent.

As at September 2005, almost 32% of EU15 subscribers used an alternative provider to route long-distance and

international calls, while almost 23% were using alternative providers for local calls. At the same time, direct access

from alternative providers was used by 7.7% of EU15 subscribers. Since last year, the percentage of subscribers using

an alternative provider has grown by 1.2 percentage points for direct access, 1.6 points for long-distance/international

calls and by 3.7 points for local calls.

Figure 17

% of subscribers using an alternative provider, EU 15

30.08%

19.23%

5.63%6.53%

31.7%

26.73%

19.60%

22.9%

13.92%

11.24%7.7%

5.53%

0%

5%

10%

15%

20%

25%

30%

35%

July 2002 July 2003 July 2004 September 2005

Long-dist./ Internat. Calls Local calls Direct access

Member States not included in the EU15 weighted average:

Local: 2005: Netherlands; 2004: Netherlands; 2003: Ireland, Italy, Netherlands, Austria; 2002: Ireland, Italy, Netherlands, Austria, France

Long distance/int.: 2005: Netherlands; 2004: Netherlands (data for United Kingdom refer to 2003); 2003: Ireland, Netherlands, Italy, Austria; 2002: Ireland, Netherlands, Italy, Austria, Germany, and France.

Direct access: 2005: Netherlands; 2004: Ireland, Netherlands; 2003: Ireland, Netherlands, Austria; 2002: Ireland, Netherlands, Austria, France,

Portugal.

EN 23 EN

The methodology for the calculation of the percentage of subscribers (residential + business) actually using a provider

other than the incumbent operator is the following:

1- LOCAL CALLS: x:y

X = sum of all alternative operators' subscribers (residential + business) with CPS contract + sum of all alternative

operators' subscribers (residential + business) with direct access for voice telephony (ULL and proprietary

infrastructure)

Y = total number of residential + business subscribers of the incumbent and new entrants, with a standard/party/group

telephone lines access. Direct telephone line access provided by an alternative operator can either be through

proprietary infrastructure or full ULL .

2-LONG DISTANCE & INTERNATIONAL CALLS: x:y

X = sum of all alternative operators' subscribers (residential + business) with CPS contract + 50% of the sum of all

alternative operators' subscribers (residential + business) with CS contract + sum of all alternative operators' subscribers

(residential + business) with direct access for voice telephony (ULL and proprietary infrastructure).

Y = total number of residential and business subscribers of the incumbent and new entrants, with a standard/party/group

telephone lines access. Direct telephone line access provided by an alternative operator can either be through

proprietary infrastructure or full ULL (in the latter case, please consider the number of unbundled active lines, and not

the total number of unbundled lines).

3-DIRECT ACCESS

Total number of subscribers with direct access, fully ULL connection or with a cable access owned by an alternative

operator

The following charts show the % of subscribers using an alternative provider for voice telephony services through

carrier selection, carrier pre-selection and direct access. Where available, separate figures for local and long-

distance/international calls are given.

Figure 18

% of subscribers using an alternative provider

for voice telephony services, September 2005

32.6%38.0%

21.2%

12.5%

17.0%

19.0%

1.0%

21.0%

0.6%

22.2%

3.1%

1.7%

19.0%

13.0

%

31.5%

24.2%

0

27.0

%

40.0%

23.7

%

32.7%

33.0%

65.

0%

7.3%

22.7%

24.0%

1.0%

6.1%

21.7%

44.0%

0%

10%

20%

30%

40%

50%

60%

70%

BE DK DE EE EL ES FR IE IT LT LU HU MT AT PL PT SI FI SE UK

Local calls Long distance/international calls

Local calls EU20 Avg. Long distance/international calls EU20 Avg.

Greece: Data refer to 31/12/2004.

Belgium, Denmark, Spain, Ireland, Luxembourg, Austria, Poland, Sweden and United Kingdom: Data do not distinguish between local, long-distance

and international calls. Data for Belgium refer to 1/01/2005. Data for Denmark refer to 1/06/2005. Data for Spain refer to 1/07/2004. Data for Austria are estimates based on 2003 and 2004 data.

Germany: Data for national and international calls refer to July 2004.

Estonia: No distinction between local and national calls. The 24% figure refers to international calls. Lithuania: No distinction between local and national calls. The 7.3% figure refers to international calls.

Malta: No alternative operators

Czech Republic, Cyprus, Latvia, Netherlands, Slovakia: No data available

EN 24 EN

Figure 19

% of subscribers using an alternative provider for direct access, September

2005

9.2%

6.0%

3.5%

1.0%

11.0%

1.8%

5.3%

1.6%0.8% 0.6%

6.0%

9.1%8.0%

0.1%

2.2%

17.9%

000

20.0%

0%

5%

10%

15%

20%

25%

BE DK DE EE EL ES FR IE IT LT LU HU MT AT PL PT SI FI SE UK

Direct access Direct access EU20 Avg.

Belgium, Greece: Data refer to 31/12/2004 Data for Austria are estimates based on 2003 and 2004 data.

Data for Spain refer to 1/07/2004.

Denmark: Direct access inc. PSTN, ISDN and ULL. France: Shared access lines have not been included.

Malta: No alternative operators

Czech Republic, Cyprus, Latvia, Netherlands, Slovakia: No data available

2.2. FACILITIES USED BY NEW ENTRANTS FOR THE PROVISION OF VOICE

TELEPHONY

This section provides information on the facilities used by new entrants to offer voice telephony, particularly to

residential users.

Data have been provided by the national regulatory authorities and refer to September 2005.

Alternative operators can route users to their network either through a carrier selection system (CS), i.e. user dials a

prefix on a call-by-call basis, or by carrier pre-selection (CPS), where the user’s calls are routed to the new entrants’

network on an automatic basis. New entrants can also provide direct access to users through proprietary wire/wireless

access or through unbundled local loops leased from the incumbent.

These facilities are not mutually exclusive and very often the same operator uses the three at the same time depending

on the type of customers (business or residential), the type of services (local or long-distance/international calls), the

geographical area, the availability of ULL, etc. The following figures should therefore be read separately and not

aggregated as country totals.

As at 1 October 2005, 985 operators were effectively providing voice telephone service at EU25 level, 150 more than in

2004. Of these, at least 438 offered their services using carrier selection and 373 through carrier pre-selection. As

indicated above, many operators use carrier selection and carrier pre-selection at the same time. This is in line with the

figures for previous years.

The following two charts show the number of operators using carrier selection and/or carrier pre-selection by Member

State at September 2005. Where possible, separate figures for types of calls are given; in the other cases separate data

were not available or operators do not differentiate the data by type of calls. In a number of countries operators do not

differentiate between local and national calls.

EN 25 EN

The following charts also show an estimate of the number of operators using carrier selection and/or carrier pre-

selection as a percentage of the number of active operators. The incumbent operator has been excluded from the list of

active operators. The figures do not show to what extent the operators are offering services to residential and/or

business users; nation-wide or only in local areas; in some cases it is not possible to know whether operators offer all

types of calls or only long-distance and international calls.

Figure 20

Number of alternative operators using CS as a % of active operators, September 2005

13

19

18

16

44

12

11

12

11

7 9 12

7 5 68

29

13

5 5 10

17

11622

4

2 3

87%

33%

42%

13%

36%

25%

32%

47%

19%

56%

6%

39%

78%

8%

0%

65%

74%

45%

14%

71%

34%

92%

35% 33%

100% 100% 100%

7%

0

20

40

60

80

100

120

140

BE

CZ Int.

DK

DE Local

DE Long Dist./Int.

EE

EL

ES Local

ES Long Dist./Int.

FR IE CY

LV local

LV Int.

LT Loc.-Nat.

LT Int.

LU

HU

MT

NL

AT

PT

SI Int.

SK

FI Local

FI Long Dist.

SE

UK

Number of operators using CS

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Operators using CS as a %

of active operators

Operators using carrier selection Op.using CS as % of active operators

Czech Republic: Information on CS for local calls not available. Denmark: Data as at 1 July 2005. No distinction between local, long-distance and international calls.

Ireland, UK: No distinction between local, long-distance and international calls.

Malta: No alternative operators Poland: Data on CS not available

Belgium, Czech Republic, Estonia, Italy, Luxembourg, Latvia, Netherlands: No distinction between local and long distance calls. Data for NL refer to

2004 Austria: Data refer to 30/09/2003.

Spain: Data refer to 2004

Slovenia: CS is only available for international calls Slovakia: CS available since June 2005

EN 26 EN

Figure 21

Number of alternative operators using CPS as a % of active operators, September 2005 13

19

22

47

12

22

15

7 7 24

29

11

13

5 4 37

242

01919

12

71 35

11%

23%

74%

16%

45%

14%

29%

74%

19%

6%

100%

35%

78%

87%

33%

18%

39%

100%

67%

54%

100%

47%

56%

3%

44%

0

20

40

60

80

100

BE

CZ Int.

DK

DE Local

DE Long Dist./Int.

EE

EL

ES

FR IE IT

CY

LV Int.

LT

LU

HU

MT

NL

AT

PL

PT

SI Int.

FI Local

FI Long Dist./Int.

SE

UK

Number of operators using CPS

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Operators using CPS as a %

of authorised operators

Operators using carrier pre-selection Op.using CPS as % of active operators

Belgium: No distinction between local and national calls.

Denmark: Data as at 1 July 2005. No distinction between local, long-distance and international calls

Estonia, Latvia: No distinction between local and national calls Spain: Data refer to 2004

Ireland, Italy, United Kingdom: No distinction between local, long-distance and international calls

Malta: No alternative operators Netherlands: No distinction between local and long distance calls. Data refer to 2004

Austria: Data refer to 30/09/2003.

Sweden: Estimated Slovenia: CPS is only available for international calls.

Slovakia: CPS not available

EN 27 EN

EN 28 EN

3. PUBLIC NETWORK INTERCONNECTION

3.1. FIXED-TO-FIXED INTERCONNECTION CHARGES

This section analyses the interconnection charges for call termination on the incumbent’s fixed network. The figures

show the charges per minute based on the first three minutes of a call at peak-time, VAT excluded.

The figures may have been approved by the NRA or simply agreed between operators, where the legal framework does

not require NRA approval. The following chart shows the EU15 weighted average for the interconnection charges since

2000 for local level, single and double transit. The exchange rates for 2005 have been applied to the years 2000-2004

for the non euro-zone countries. Since August 2000, the EU weighted average charge for call termination on fixed

networks has decreased by 39% for single transit and by 32% for local level and double transit. Major reductions took

place between 2000 and 2002 and again during the past 2 years, especially as regards double transit, with annual

reductions of 8% in 2004 and 12% in 2005. A number of New Member States have seen significant reductions in their

interconnection rate levels. Among this generalised downward trend, the major changes since last year have occurred in

Slovakia (-56%), the United Kingdom (-34%) and Greece (-16%) for local level termination, Latvia (-52%), Malta (-

50%), Slovakia (-49%) and Sweden (-40%) for single transit, and Latvia (-79%), the United Kingdom (-59%), Slovakia

(-53%) and Malta (-50%) for double transit call termination.

There is a strong correlation between the charge level and the timing of liberalisation of the market. Interconnection

charges, for most of the new Member States, are still higher than those for EU15.

Figure 22

Fixed-to-fixed interconnection charges

EU15 weighted average (euro-cents)

0.79 0.740.63 0.61 0.58 0.54

1.41

1.25

1.00 0.970.90 0.86

1.971.88

1.68 1.65

1.51

1.33

0.0

0.5

1.0

1.5

2.0

2.5

July 2000 July 2001 July 2002 July 2003 July 2004 October 2005


Local level Single transit Double transit

EU15 average for local level and double transit in 2005 does not include Finland.

EN 29 EN

Figure 23

Fixed-to-fixed interconnection charges

EU25 weighted average (euro-cents)

0.600.65

0.941.01

1.39

1.61

0.0

0.5

1.0

1.5

2.0



Local level Single transit Double transit

Local level: CY and LV not included in the 2004 average. FI, LV and MT not included in the 2005 average.

Single transit: All MS included in the 2004 average. LT not included in the 2005 average.

Double transit: All MS included in the 2004 average. FI not included in the 2005 average.

The following three charts show the interconnection charges for local level, single and double transit as of 1 October

2005. The values at July 2004 are also shown.

Figure 24

Interconnection charges for call termination on incumbents' fixed network (peak time)

Local level - EU14 average: 0.54 €-cents - EU22 average: 0.60 €-cents

0.25

0.35

0.47

0.47

0.53

0.58

0.58

0.59

0.66

0.68

0.69

0.71

0.71

0.73

0.75

0.82

0.82

0.83

0.92

1.05

1.31

2.61

0.0

0.3

0.5

0.8

1.0

1.3

1.5

UK CY DK IT FR IE EL DE SE PT BE ES NL PL SI EE AT HU LU CZ SK LT


July 2004 October 2005 EU14 weighted avg. October 2005 EU22 weighted avg. October 2005

LT

no

t to

sca

le:

2.6

Germany: Valid until 31.05.2006

Spain: Interconnection fees have been revised with effect from 1 November 2005. Price of capacity based

interconnection (2 Mb/s): 1 326.11 €/month local, 1 863 €/month metropolitan. In real terms capacity based

interconnection prices are half of time based interconnection. Greece: The audit for cost orientation based on LRAIC+/CCA for the year 2005 was in progress during the drafting of the report

Latvia, Malta: Interconnection at local level not offered.

Finland: Charges of 44 SMP operators vary between 0,01025 € - 0,0152 €. The average charge for local level interconnection is not available. In 2004 FICORA informed only of Elisa's and TeliaSonera's charges. Therefore charges are not directly comparable. Price comparison of termination charges

can be found at FICORA's web pages: http://www.ficora.fi/suomi/tele/tahintavertailu.htm

Hungary: Prices refer to the main incumbent operator Matav Netherlands: Tariff for KPN's terminating services. For KPN's originating service a different tariff applies: 0,70 €

Slovakia: Peak prices cannot be compared with other MS because there are 3 interconnect times. Prices should be reduced by 12% for the data to be

comparable.

http://www.ficora.fi/suomi/tele/tahintavertailu.htm

EN 30 EN

Figure 25


Single transit - EU15 average: 0.86 €-cents - EU25 average: 0.94 €-cents

0.35

0.40

0.56

0.69

0.72

0.84

0.87

0.89

0.92

0.96

0.96

0.97

1.00

1.04

1.05

1.15

1.21

1.23

1.28

1.28

1.46

1.94

2.80

3.48

0.90

0.0

0.5

1.0

1.5

2.0

2.5

3.0

UK SE CY EE DK IT EL IE NL LU DE BE PT FR SI ES LV PL HU AT CZ FI SK MT LT



LT

no

t to

sca

le:

3.5

Germany: Valid until 31.05.2006 Greece: The audit for cost orientation based on LRAIC+/CCA for the year 2005 was in progress during the drafting of the report

Spain: Interconnection fees have been revised with effect from 1 November 2005. Price of capacity based interconnection (2 Mb/s): 2 213 €/month. In

real terms capacity based interconnection prices are half of time based interconnection.In real terms capacity based interconnection prices are half of time based interconnection.

Hungary: Prices refer to the main incumbent operator Matav

Malta: Only one interconnection level. Netherlands: Tariff for KPN's terminating services. For KPN's originating service a different tariff applies: 1.06 €

Slovakia: Peak prices cannot be compared with other MS because there are 3 interconnect times. Prices should be reduced by 12% for the data to be

comparable. Finland: Charges of 44 SMP operators vary between 0,01026 € - 0,0152 €. Average charge of single transit is 0,014627 € and median 0,01513 €. In

2004 FICORA informed only of Elisa's and TeliaSonera's charges. Therefore charges are not directly comparable. Price comparison of termination

charges can be found at FICORA's web pages: http://www.ficora.fi/suomi/tele/tahintavertailu.htm

http://www.ficora.fi/suomi/tele/tahintavertailu.htm

EN 31 EN

Figure 26


Double transit - EU14 average: 1.33 €-cents - EU24 average: 1.39 €-cents

0.62

0.72

0.85

0.91

0.96

1.15

1.15

1.20

1.20

1.24

1.25

1.30

1.38

1.44

1.52

1.52

1.67

1.76

2.14

2.25

2.80

2.81

3.48

1.47

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

UK SE EE DK CY LV NL IE BE LU FR EL IT PL PT DE CZ SI HU ES AT MT SK LT



Germany: Valid until 31.05.2006 Greece: The audit for cost orientation based on LRAIC+/CCA for the year 2005 was in progress during the drafting of the report

Spain: Interconnection fees have been revised with effect from 1 November 2005. Price of capacity based interconnection (2 Mb/s): 3 186 €/month. In

real terms capacity based interconnection prices are half of time based interconnection.In real terms capacity based interconnection prices are half of time based interconnection.

Finland: The charges of the 46 SMP operators differ.

Hungary: Prices refer to the main incumbent operator Matav Malta: Only one interconnection level.

Netherlands: Tariff for KPN's terminating services. For KPN's originating service a different tariff applies: 1.50 €

Slovakia: Peak prices cannot be compared with other MS because there are 3 interconnect times. Prices should be reduced by 12% for the data to be comparable.

Finland: Double transit charges are not regulated. Information of double transit charges is confidential.

EN 32 EN

3.2. FIXED-TO-MOBILE INTERCONNECTION CHARGES

This section shows the per-minute interconnection charges for fixed call termination on the networks of mobile

operators. Charges for call termination on the networks of 3G operators are not included.

In the following charts information is shown for 76 mobile operators in the EU (representing almost 100% of the EU

mobile market). A total of 50 operators have been designated as having significant market power in the national market

for interconnection (SMP). Only in Denmark, Germany, Estonia and Slovakia there are no SMP designated operators.

There were 34 SMP operators in July 2004. Given the different status of implementation of the new regulatory

framework in each Member State1, in some countries SMP designation is made under the old framework, while in other

countries it is based on the market analysis carried out by the national regulatory authorities. SMP operators cover 73%

of the EU mobile market in terms of subscribers, up from 62% in July 2004. Charges are for calls originated in the same

countries.

In Finland fixed to mobile charges only apply when the call is made through a prefix code or carrier pre-selection. In

other cases, local operators determine the local network charges and mobile operators determine the mobile call

charges.

In Estonia charges for two operators may change depending on the volume of calls (below or above 3 million minutes

per month). In the charts below the second option is presented. In Spain interconnection fees have been revised with

effect from 1 November 2005.

The per-minute interconnection fees are based on the first three minutes of a call at peak rate, except for the

Netherlands, where an average peak/off-peak rate is given. In Lithuania the figure is an average based on the

interconnection fees of the three mobile operators.

Data have been collected by the NRA, and refer to October 2005. Data for Germany was taken from Cullen

International.

The following chart shows the trend in the weighted average fixed-to-mobile interconnection fees for SMP and non

SMP mobile operators in the EU25 between July 2004 and October 2005. The 2005 exchange rates have been applied

to the non euro-zone countries for 2004.

1 At 1 October 2005.

EN 33 EN

Figure 27

EU25 average fixed-to-mobile interconnection charges in the national interconnection

market

12.96

13.80

12.64

16.33

13.81

14.71

10

11

12

13

14

15

16

17




Figure 28 shows the national weighted average for SMP and non-SMP operators. The EU25 weighted average of fixed-

to-mobile interconnection charges for the SMP operators in the interconnection market is 12.64 €-cents. For the non-

SMP operators the average fee is 13.81. If all mobile operators were considered, the average charge would be 12.96

(Figure 27). Values for each country are weighted average prices based on the number of subscribers and the

termination rate of each operator.

Figure 28

Interconnection mobile termination charges of SMP and non-SMP operators on the

national interconnection market, October 2005EU25 weighted average: SMP op. 12.64 - non-SMP op. 13.81

EU15 weighted average: SMP op. 12.30 - non-SMP op. 13.96

14.16

14.50

13.49

16.08

13.43

12.10

2.16

8.91

15.00

14.02

12.42

16.59

18.78

7.33

8.59

8.78

20.27

10.51

14.20

13.62

16.42

15.98

14.35

10.43

15.00

14.10

13.91

21.00

10.98

12.4

1

13.0

0

10.51

0

5

10

15

20

25




Czech Republic: RIO price list Germany: Data from Cullen International Cross Country Analysis

France: Mainland operators only. Overseas operators not included

EN 34 EN

Figure 29

Fixed-to-mobile national average interconnection charges EU25 weighted average (all operators, €-cents), October 2005: 12.96

EU15 weighted average (all operators, €-cents), October 2005: 12.79

16.3

2

15.5

1

15.0

8

17.5

2

15.8

0

15.7

6

17.5

7

15.0

0

16.3

0

12.8

4

21.2

8

11.2

7

9.06

15.2

7

14.2

0

13.6

2

16.4

2

14.8

6

13.4

9

16.0

8

13.4

3

12.5

9

2.16

8.91

10.4

3

15.0

0

14.0

2

12.4

2

13.7

2

12.4

1

16.5

9

13.9

1

18.8

1

10.9

8

7.33

8.59

8.78

12.0

0

21.4

2

15.5

2

17.8

8

16.1

0

10.4

3

11.3

6

3.12

18.7

6

10.0

910

.51

0

5

10

15

20

25



July 2004 Oct-05 EU25 average October 2005

Czech Republic: RIO price list

Germany: Data from Cullen International Cross Country Analysis

France: Mainland operators only. Overseas operators not included Ireland, Finland: 2004 data not comparable

The following chart shows the trend in the weighted average fixed-to-mobile interconnection fees for SMP and non

SMP mobile operators in the EU15 between July 2001 and October 2005. The 2005 exchange rates have been applied

to the non euro-zone countries for previous years. The figure for 2001 for non-SMP operators is not available.

Following the notifications of SMP further to the market analysis process, in 2005 the difference between SMP and

non-SMP average charges has dropped. This decrease has been driven by a higher number of operators having been

designated SMP and also because the reduction in the termination charges of non-SMP operators has been higher than

that of SMP operators. In 2003 call termination on non-SMP operators was on average 17% more expensive (2.7 €-

cents), while in 2005 this difference had gone down to 13% (1.66 €-cents).

Between 2004 and 2005 the average termination rate for SMP operators has decreased by 10%, while the reduction for

the non SMP operators was 15%.

The increase in the number of SMP designated operators signalled in the last report has continued and EU15 SMP

operators now cover 73% of subscribers, against 62 in 2004, 45% in 2003 and 41% in 2002.

Despite the continuing decline in the interconnection charges, their level remains on average more than 9 times higher

than the average fixed-to-fixed interconnection charges (double transit).

EN 35 EN

Figure 30

EU15 average fixed-to-mobile interconnection charges in the national interconnection

market

12.79

12.30

13.65

15.75

20.54

18.81

13.96

16.47

18.46

18.73

18.76

14.71

17.28

10

12

14

16

18

20

22




Figure 31 shows the average national mobile termination charge in the EU15 for the last three years. At EU15 level

there has been a 26% reduction. The most significant cuts have occurred in Portugal (-34%), Italy (-28%) and Sweden (-

23%). Termination charges have decreased or remained stable in all Member States except France, where prices have

increased.

Figure 31

Fixed-to-mobile national average interconnection charges

EU15 weighted average (all operators, €-cents):

2005: 12.79 - 2004: 14.71 - 2003: 17.28

17.9

15.6

15.1

19.1

18.1

15.5

17.5

13.4

21.9

12.9

26.8

15.5

20.9

16.3

2

15.5

1

15.0

8

17.5

2

15.8

0

15.7

6

17.5

7

15.0

0

16.3

0

12.8

4

21.2

8

11.2

7

9.0

6

15.2

7

14.

20

13.6

2

14.8

6

13.

49

16.0

8

13.4

3

12.5

9 15.0

0

13.

72

12.4

1

13.

91

7.3

3 8.59

8.78

0

5

10

15

20

25

30



July 2003 July 2004 October 2005 EU15 average October 2005

Germany: Data from Cullen International Cross Country Analysis France: Mainland operators only. Overseas operators not included

Ireland, Finland: 2003 & 2004 data not comparable

The following charts show the individual fixed-to-mobile interconnection charges for 77 mobile operators in the EU. In

Cyprus charges are as cheap as 2.2 € cents, whereas the most expensive fee is found in Slovenia at 21.8 € cents. If the

termination fee in Cyprus is excluded, the differential of the most expensive termination fee from the cheapest

expressed as a percentage of the cheapest fee is 176%, similar to that of 2004.

EN 36 EN

Figure 32

I.C. charges for call termination on mobile networks (peak) in €-cents,October 2005

EU25 weighted average: SMP op. (*): 12.64 Non-SMP op: 13.81 All op.: 12.96


13.00

12.83

12.10

11.41

8.59

6.80

13.40

13.20

13.15

13.01

13.00

10.86

10.51

10.43

9.28

8.40

8.28

2.16

13.18

12.90

12.54

8.91

10.98

0 5 10 15 20 25 30

DK (Sonofon) (+)


AT- T-Mobile(*)


HU-Vodafone (*)



IE-O2 (*)(+), Vodafone(*)(+)




MT-Vodafone(*)(+)


AT- Mobilkom(*)

CZ-Eurotel Praha(+)(*), T-Mobile (+)(*), Cesky

Mobil



LV-Tele2(*), LMT(*)


FI-Elisa(*)


FI-Sonera(*)

CY-CYTA(*)(+)


Legend:

(*) SMP operators in the national interconnection market (+) SMP operators in the national mobile market

EN 37 EN

Figure 33

I.C. charges for call termination on mobile networks (peak) in €-cents,October 2005



18.78

17.78

16.59

16.59

15.50

15.17

14.76

14.50

21.00

20.27

19.50

18.20

15.98

15.00

14.90

13.51

13.80

13.90

14.35

14.47

14.70

15.00

15.52

17.26

18.04

21.84

0 5 10 15 20 25 30

SI- Si.mobil(*)(+)


BE- Base

EL- Q Telecom

FR- Bouygues Tlc(*)

PT- Optimus

SI- Mobitel(*)(+)

IE- Meteor(*)

EE-Tele2

PL- Centertel(*)(+), Polkomtel(*)(+), Polska

Telefonia Cyfrowa(*)(+)

BE- Mobistar (*)(+)

EE- EMT(+), Elisa

FR-Orange(*)(+)

FR- SFR(*)(+)




DE-Eplus, O2 (Viag)

HU-Pannon(*)

NL-Ben (T-Mobile), Orange (Dutchtone), O2 NL

(Telfort)



IT-Wind





Legend:

(*) SMP operators in the national interconnection market

(+) SMP operators in the national mobile market Czech Republic: RIO price list

Germany: Data from Cullen International Cross Country Analysis (August 2005, Table 29, Page 158)

Estonia: 2.50 EEK/min (15.98 €cents) if call volume is 3 or over 3 million minutes per month and 2.70 EEK/min (17.26 €cents) if call volume is less than 3 million minutes per month.

Greece: Minimum call duration is 30 seconds.

Spain: A new set of interconnection tariffs is applied since 1 November 2005. France: Mainland operators. Overseas operators not included

Figures for the Netherlands are not comparable since they represent an average peak/off-peak rate. Figures for Lithuania represent an average based

on the interconnection fees of the three mobile operators Poland: URTiP’s 2003 decision on SMP designation in the mobile termination market has been appealed by operators.

In Finland fixed to mobile charges only apply when the call is made through a prefix code or carrier pre-selection.

EN 38 EN

3.3. LEASED LINES INTERCONNECTION CHARGES

This section shows the monthly rental and the one-off charges for short-distance leased lines (local ends, excluding

VAT), up to 2 and 5 km, provided by the incumbent operator to other interconnected operators.

The distance refers to the radial distance between the customer local end leased line and the point of interconnection.

It should be noted that in some cases data include the handover costs, while in other cases these costs are excluded.

National Regulatory Authorities have provided these figures through the questionnaire for the 11th Implementation

Report. Figures indicate the position in October 2005.

3.3.1. 64 Kbit/s part circuit

Figure 34

Monthly rental for leased line 64 Kbit/s part circuit, October 2005EU18 weighted average 2 Km: 70.68 €, 5 Km: 83.05 €

EU15 weighted average 2 Km: 69.29 €, 5 Km: 82.87 €

99

40 42 45

34

63

108

76

100

132

42

104

49

84

43

38

143

36

171

65 67

45

36

102 113

80

100

132

65

104

49

86

43 48

164

37

25

50

75

100

125

150

175

200

225

250

BE DK DE EE EL ES FR IE IT LT LU NL AT PL PT FI SE UK

€-m

onth

2km 5km Czech Republic: Individual price Denmark: Figures from TDC referring to 2 resp. 5 km, while TDC for some of the products sets a price depending on actual distance

Greece: The audit for cost orientation based on LRAIC+/CCA for the year 2005 was in progress during the drafting of the report

Estonia: Customer to node circuit. Additional nodo-to-node circuit (up to 6 Km) is EEK 475 (€30.35) Ireland: Based on the price of a partial private circuit with a tail circuit of 2Kms and exlcuding the cost of transport links

Latvia: IC circuits not offered

Lithuania: Price is determined by the traffic and not by the length of the line Luxembourg: Minimum price for 5Km. circuits (€65 to €83)

Malta: Price for local end part circuit is not offered

The Netherlands: For 64kbit there is no local service offer. Only a regional service offer is available. Finland: Average of seven operators (TeliaSonera Finland, Elisa, Vaasan Läänin Puhelin*, Kokkolan puhelin*, Lännen Puhelin*, Päijät-Hämeen

Puihelin* and KPY Verkot*). *=Part of the Finnet-group. Prices are not directly comparable becase of the variations in pricing methods in different geographical areas.

Slovenia: IC circuits not offered

Slovakia: 64 Kb/s IC circuits not available United Kingdom: The rates listed are the monthly circuit rental (standard maintenance) and include a proportion (1/12th) of the local end fixed charge

(calculated for each of 2 and 5 km)

Cyprus, Hungary: Data not available

EN 39 EN

Figure 35

One-off charge for leased line 64 Kbit/s part circuit, October 2005

620

1 781

735

282

497

544

563

766

273

371

304

350

425

842

818

219

417

170

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

BE DK DE EE EL ES FR IE IT LV LT LU NL AT PT FI SE UK

€

Czech Republic: Individual price

Denmark: Weighted average of the one-off connection costs Greece: The audit for cost orientation based on LRAIC+/CCA for the year 2005 was in progress during the drafting of the report

Slovakia: 64 Kb/s IC circuits not available

Cyprus, Hungary, Poland: No data available Malta: Price for local end part circuit is not offered

Austria: Price for a one-year contract. Otherwise price is € 700


3.3.2. 2 Mbit/s part circuit

Figure 36

Monthly rental for leased line 2 Mbit/s part circuit, October 2005EU21 weighted average 2 Km: 260.44 €, 5 Km: 299.93 €

EU15 weighted average 2 Km: 246.77 €, 5 Km: 306.37 €

267

642

73

151

145

160

427

347

473

350

290

255

234 273

145

322

134

216

215

98

490

208

244

145

167

596

383

522

78

290

384

234

273

145

359

134

253

353

115

32

350

100

200

300

400

500

600

700

BE CZ DK DE EE EL ES FR IE IT CY LT LU HU NL AT PL PT FI SE UK

€-m

onth

2km 5km Czech Republic: Individual price for circuits longer than 2 Kms

Denmark: Figures from TDC referring to 2 resp. 5 km, while TDC for some of the products sets a price depending on actual distance.

Greece: The audit for cost orientation based on LRAIC+/CCA for the year 2005 was in progress during the drafting of the report Estonia: Customer to node circuit. Additional nodo-to-node circuit (up to 6 Km) is EEK 1562 (€99.83)

Ireland: Based on the price of a partial private circuit with a tail circuit of 2Kms and excluding the cost of transport links

Malta: Price for local end part circuit is not offered Latvia: IC circuits not offered

EN 40 EN

Lithuania: Price is determined by the traffic and not by the length of the line

Luxembourg: Minimum price for 5Km. circuits (€384 to €587) The Netherlands: For 2Mbit/s there is no km-dependent charge. The service is offered at a standard charge from the end-user location to the local

exchange office.

Finland: Average of seven operators (TeliaSonera Finland, Elisa, Vaasan Läänin Puhelin*, Kokkolan puhelin*, Lännen Puhelin*, Päijät-Hämeen Puihelin* and KPY Verkot*). *=Part of the Finnet-group. Prices are not directly comparable because of the variations in pricing methods in different

geographical areas.

United Kingdom: The rates listed are the monthly circuit rental (standard maintenance) and include a proportion (1/12th) of the local end fixed charge (calculated for each of 2 and 5 km)

Slovakia: 34 Mb/s IC circuits not available


Figure 37

One-off charge for leased line 2 Mbit/s part circuit, October 2005

2 107

608

1 628

825

1 389

557

1 107

809

688

1 196 1 487

375

750

750

1 288

1 261

2 824

170 500

1 000

1 500

2 000

2 500

3 000

BE CZ DK DE EE EL ES FR IE IT LT LU NL AT PT FI SE UK

€

Denmark: Weighted average of the one-off connection costs Greece: The audit for cost orientation based on LRAIC+/CCA for the year 2005 was in progress during the drafting of the report

Latvia: IC circuits not offered

Cyprus, Hungary, Poland: Data not available Malta: Price for local end part circuit is not offered

Austria: Price for a one-year contract. Otherwise price is € 1500 Slovakia: 2 Mb/s IC circuits not available


EN 41 EN

3.3.3. 34 Mbit/s part circuit

Figure 38

Monthly rental for leased line 34 Mbit/s part circuit, October 2005EU19 weighted average 2 Km: 1080.5 €, 5 Km: 1478.6 €

EU15 weighted average 2 Km: 1045 €, 5 Km: 1464.7 €

827

879

481 743

1 957

1 572

2 927

1 800

977 1 360

636

721

1 529

1 007

623

1 540

538

2 204

2 519

793

743

2 047

2 772 3 125

2 600

1 303

1 536

636

721

1 758

1 007

692

1 733

715

294

1 105

331

1 105

500

1 000

1 500

2 000

2 500

3 000

3 500

BE DK DE EE EL ES FR IE IT CY LT LU NL AT PL PT FI SE UK

€-m

onth

2km 5km

Czech Republic: Individual price

Denmark: Figures from TDC referring to 2 resp. 5 km, while TDC for some of the products sets a price depending on actual distance.

Greece: The audit for cost orientation based on LRAIC+/CCA for the year 2005 was in progress during the drafting of the report Estonia: Customer to node circuit.

Ireland: Based on the price of a partial private circuit with a tail circuit of 2Kms and excluding the cost of transport links

France: Price list only available for 64Kb/s and 2Mb/s. There is no 34 Mbit/s standard price offer. Latvia: IC circuits not offered

Lithuania: Price is determined by the traffic

Luxembourg: Minimum price for 5Km. circuits (€1536 to €1711) The Netherlands: A 34Mbit/s service is only offered at a fibre access. For the purpose of calculating a tariff a third of the costs of a 155Mbit/s service

is included to determine the tariff of a 34 Mbit/s service.

Malta: Price for local end part circuit is not offered Hungary: Data not available

Finland: Average of three operators (TeliaSonera Finland, Elisa, Kokkolan Puhelin). Prices are not directly comparable becase of the variations in

pricing methods in different geographical areas. United Kingdom: The rates listed are the monthly circuit rental (standard maintenance) and include a proportion (1/12th) of the local end fixed charge

(calculated for each of 2 and 5 km)

Slovakia: 34 Mb/s IC circuits not available Slovenia: IC circuits not offered

EN 42 EN

Figure 39

One-off charge for leased line 34 Mbit/s part circuit, October 2005 2 479

2 500

3 334

2 361

6 032

6 087

2 966

1 000

2 644

750

3 000

1 406

1 194

743

2 354

2 172

12 211

2 000

4 000

6 000

8 000

10 000

12 000

14 000

BE DK DE EE EL ES FR IE IT LT LU NL AT PT FI SE UK

€

Denmark: Weighted average of the one-off connection costs

Greece: The audit for cost orientation based on LRAIC+/CCA for the year 2005 was in progress during the drafting of the report

France: There is no 34 Mbit/s standard price offer Price in the Netherlands is an average of 2 times 34 Mbit/s in a 155 Mbit/s fibre access service and a 155 Mbit/s broadband access group.

Czech Republic, Cyprus, Hungary, Poland: Data not available

Latvia: IC circuits not offered Malta: Price for local end part circuit is not offered

Austria: Price for a one-year contract. Otherwise price is € 1500

Slovakia: 34 Mb/s IC circuits not available Slovenia: IC circuits not offered

EN 43 EN

EN 44 EN

4. MOBILE MARKET

4.1. 2G MOBILE PENETRATION

This section provides information on the number of mobile subscribers and the penetration rate for mobile telephony

services in each Member State. The growth in the penetration rate since 2004 is also shown.

The table below indicates the source of the data and the reference date.

Where available, data have been provided by the National Regulatory Authorities (NRAs). For those countries where

NRAs did not have up to date information, figures are estimates from the “European Mobile Communications”

database.

The EU average is a weighted average.

It should be noted that operators and regulators use different methods to count the number of subscribers. Some

regulators distinguish between the overall number of mobile subscribers and the number of active subscribers. The table

indicates where this information is available. Some operators consider the total number of users that have made or

received a call or sent an SMS in the last 9 or 6 months, whereas others only consider the active users of the last 3

months. This has an impact in the penetration rate, especially in small countries.

MOBILE SUBSCRIBERS

2004 Source data 2005 Source data Comments 2005

BE July NRA July NRA Split -pre-paid/post-paid is an estimate

CZ July NRA July NRA Split -pre-paid/post-paid not available for one operator

DK July NRA July NRA

DE October NRA (e) October NRA (e) Split -pre-paid/post-paid is an estimate

EE October NRA October NRA

EL July NRA July NRA Figures refer to active subscribers

ES July NRA July NRA

FR October NRA October NRA

IE October EMC October NRA

IT October EMC October EMC

CY October NRA October NRA

LV October NRA October NRA

LT October NRA October NRA Figures refer to active subscribers

LU October EMC October EMC

HU September NRA October NRA

MT October NRA October NRA

NL July EMC July EMC

AT October EMC October EMC

PL October NRA October NRA

PT October NRA October NRA

SI Data not comparable

NRA October NRA

SK October EMC October NRA

FI October NRA (e) October NRA (e) Split -pre-paid/post-paid not available

SE October NRA (e) October NRA (e) Based on EMC data

UK July NRA July NRA

The following chart shows the absolute number of mobile subscribers in each Member State (columns) and the

penetration rate (dots), measured as the number of subscribers per 100 population.

Figures include analogue subscribers and 3G subscribers.

EN 45 EN

Figure 40

Mobile subscribers and penetration rate, October 2005

Total EU25 subscribers: 426 million

8.710.8

5.2

76.1

1.4

9.9

4.0

65.1

0.7 1.84.0

0.7

9.1

0.3

15.4

8.2

27.1

11.1

1.84.3 5.1

9.1

61.6

46.140.4

83%

105%

96%

104%

89%94% 96%

111%

99%

79%

117%

150%

90%

81%

94%99%

71%

106%

90%

80%

98%101%103%

76%

90%

10

20

30

40

50

60

70

80


0%

20%

40%

60%

80%

100%

120%

140%

160%

Subscribers Penetration rate

3G subscribers are included BE, CZ, DK, EL, ES, NL, UK: July 2005

France: National market (mainland France and overseas departments)

Luxembourg: The penetration rate has been calculated on the basis of the national population only, without including trans-national commuters. Sweden: The definition of pre-paid active subscribers has changed resulting in a 20% reduction in the number of pre-paid subscribers compared to

previous years.

The following chart shows the number of subscribers and the split between post-paid and pre-paid subscribers.

Figure 41

Mobile subscribers in EU25 (prepaid and pay monthly), October 2005

Total EU25 subscribers: 426 million

40.64.7n.a.2.40.89.116.22.38.80.36.30.32.61.10.455.03.016.020.25.90.538.41.07.75.6

4.4

5.12.01.0

2.1

10.9

5.8

6.5

28.6

0.0

2.8

0.31.4

0.70.3

10.1

1.0

20.1

4.0

0.9

37.6

4.2

3.03.1

20.9

10

20

30

40

50

60

70

80


Prepaid Monthly paid

3G subscribers are included

BE, CZ, DK, EL, ES, NL, UK: July 2005 France: Mainland market only

Finland: Split pre-paid/post-paid not available

Luxembourg: The penetration rate has been calculated on the basis of the national population only, without including trans-national commuters. Sweden: The definition of pre-paid active subscribers has changed resulting in a 20% reduction in the number of pre-paid subscribers compared to

previous years.

EN 46 EN

Figure 42 displays the growth in mobile penetration expressed in percentage points. Data refer to October 2005 unless

otherwise indicated.

Figure 42

Mobile penetration and growth 2004-2005

6

10

5

16

10

5

3

7

10

78

56

8

16

7

5

37

17

8

14

9

11

6

0%

20%

40%

60%

80%

100%

120%

140%

160%


Penetration rate

0

5

10

15

20

25

30

35

40

Growth in percentage points

Oct-04 Oct-05 Growth rate 2004/2005

3G subscribers are included

BE, CZ, DK, EL, ES, NL, UK: July 2004-July 2005

Luxembourg: The penetration rate has been calculated on the basis of the national population only, without including trans-national commuters. Sweden: The figure for 2004 has been adjusted to enable comparison with 2005.

The chart below displays the number of 2G subscribers in the EU between 1998 and 2005. Where possible, 3G

subscribers have been excluded in order to compare the penetration rate in the past three years.

Figure 43

Mobile 2G subscribers and average penetration in EU25 & EU15, 1998 - 2005

69

115

194

265

283 306 332 356383 418

81%

75%

70%

52%

31%

18%

86%

92%

83%

91%

0

50

100

150

200

250

300

350

400

450

1998 1999 2000 2001 2002 2003 2004 2005

Million of subscribers

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

EU average penetration rate

Subscribers EU15 Subscribers EU25 Penetration rate EU15 Penetration rate EU25Source: Commission services based on NRA data and EMC estimates

The figure for 2005 is overestimated since it includes 3G subscribers in a number of countries where the split 2G/3G is not available

BE, CZ, DK, EL, ES, NL, UK: July 2005

EN 47 EN

4.2. PLAYERS IN THE MOBILE MARKET

This section shows the number of mobile licences granted in each Member State for the provision of analogue,

GSM 900, DCS 1800 and UMTS services.

The data on the number of licensed operators have been provided by the national regulatory authorities and refer to the

situation in September 2005.

The following chart shows the number of operators licensed to provide digital mobile services (second-generation). The

number of operators indicates the real magnitude of the choice of operators for customers of digital mobile services,

since very often operators have licences for both GSM 900 and DCS 1800. Mobile network operators have been

identified as having only GSM 900 or only DCS 1800 frequencies, or both (in which case they have usually been

granted a GSM 900 licence which has subsequently been extended to the DCS 1800 band).

Information on mobile service providers has been included where available (without distinction between local and

national coverage). Mobile service providers are defined as entities authorised to offer mobile service under their own

brand name (dealing with marketing, billing, etc.), using a third party’s mobile network.

Figure 44

Operators authorised to provide 2G mobile services, September 2005

Total EU25: 79 network operators, 214 mobile service providers

1

4

1 1

2 2

1 1

42

422

3

3 33

33 3 3 3 2 3 32

33

3 3 3

9

3

24

8 10

8

23

27

3

17

1

11

20

0

5

10

15

20

25

30


Operators with DCS or GSM licence only Operators with GSM and DCS licences Service providers

UK not to scale

Value: 50

The Netherlands: 1 MVNO + 16 resellers

Estonia: Only 4 MVNOs are active Lithuania: Only 4 service providers are active

Finland: Operators in the Aland Islands are not included

EN 48 EN

4.3. 3G PLAYERS

Figure 45

UMTS licences, September 2005

Total EU: 79 licences

3 3

2

4

3 3 3

2

3

2

4

3 3

2

5

4

3 3

1

2

3

2

4

1

1

1

1

1

1

3

0

1

2

0

1

2

3

4

5

6


Operators with UMTS and GSM/DCS licences Operators with UMTS licence only

Latvia: Including one CDMA licence

Lithuania: Licence for trials in 2004. There were no 3G operators in 2005. The tender for 3G licences was announced on 17 November 2005.

Finland: Figures do not include local operators Sweden: 1 UMTS license is held by “Svenska UMTS Licens AB”, a company fully owned by “Sbenska UMTS-nat AB”, shared 50 per cent each by

Tele2 and Telia.

Figure 46 shows the status of the launch of 3G services (trial and commercial). The following categories are presented:

• Trial: Tests with a closed group of selected users

• Commercial-trial: Trials open to any users with special price packages.

• Commercial: Fully commercial services open to any users at standard tariffs.

Services can be provided by means of data-cards or handsets or both together.

EN 49 EN

Figure 46

3G operators offering commercial services, September 2005

Total EU: 58

3

1

4

3 3

2

3

4

2

0

3

2

5

3

1

3

4

5

2

1 1 1

0

1

2

3

4

5

6

7


Trial Commercial-Trial Commercial

Denmark: In November 2005 a second operator launched commercial services. At least two service providers have launched commercial services

using this operator’s network

Estonia: Commercial operations started on 22 October 2005 France: In November 2005 a third operator launched commercial services

Finland: Operators in the Aland Islands are not included

Lithuania: Licence for trials in 2004. There were no 3G operators in 2005. The tender for 3G licences was announced on 17 November 2005.

4.4. 2G OPERATORS’ MARKET SHARES

The following charts show the market shares, based on subscribers, of the leading operator and the main competitors in

the second generation mobile market.

Operators’ market shares have been calculated for the overall mobile market (including analogue, DCS 1800/GSM 900

and UMTS subscribers). There are analogue subscribers in Czech Republic, Italy, Poland, Slovenia, Slovakia and

Sweden.

Data concerning market shares are based on the data supplied by the NRAs. Data on market shares in Czech Republic,

Greece, Latvia, Portugal, Finland and Sweden are confidential.

In a few countries there exist discount mobile operators which are partially or fully owned by other mobile operators.

Mobile customers that have signed-up with these discount operators have been considered separately.

In the United Kingdom, Ireland, Latvia and Lithuania the fixed incumbent operator does not have a mobile subsidiary.

In all other countires, with the exception of Luxembourg, Hungary, Malta, Poland and Slovakia, the leading operator is

a subsidiary of the incumbent fixed network operator. Figure 47 shows the shares of the leading operator, the main

competitor and the other competitors in the mobile market.

EN 50 EN

Figure 47

Digital mobile market share based on customers, October 2005

(GSM 900/DCS 1800)

47%

31% 38% 46%

48%

47%

49%

40%

93%

37%

58%

45% 52%

36% 40%

36%

74%

56%

25%

42%

43%

32%

20%

37%

32%

28% 36% 40%

32%

7%

32%

29%

34%

48%

24% 25%

34%

20%

44%

24%

31%

32%

21%

49%

25%

21%

24% 17% 12%

27%

31%

13%

21%

41% 34%

31%

7%

51%

26%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

BE DK DE EE ES FR IE IT CY LT LU HU MT NL AT PL SI SK UK EU15 EU25

Leading operator Main competitor Other competitors

Data on market shares in CZ, EL, LV, PT, FI and SE are confidential

The following chart shows the market share, in terms of subscribers, of the mobile subsidiary of the incumbent fixed

operator. In the United Kingdom, Ireland, Latvia and Lithuania the fixed incumbent operator does not have a mobile

subsidiary. As stated above, users of discount mobile operators controlled by the mobile subsidiaries of the incumbent

fixed operators have not been included in the chart below.

Figure 48

Overall mobile market share based on subscribers of the subsidiary of the incumbent

fixed operator, October 2005

47%

31%

38%

46% 48% 47%

40%

93%

58%

45%48%

36%

40%

34%

74%

44%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

BE DK DE EE ES FR IT CY LU HU MT NL AT PL SI SK

Data on market shares in CZ, EL, PT, FI and SE are confidential No mobile subsidiary of the fixed incumbent operator in IE, LV, LT and UK

EN 51 EN

Competition in the mobile sector is intensifying. Figure 49 shows that the average market share of leading operators,

based on subscribers in the EU15 Member States, has dropped from 43.2% last year to 39.5% this year.

Figure 49

EU15 average mobile operators' market share

39.5%43.2%

46.6%47.1%48.0%

56.3%

64.0%60.5%

56.8%

53.4%52.9%52.0%

49.6%

44.0%

36.0%

0%

20%

40%

60%

80%

100%

1998 1999 2000 2001 2002 2003 2004

EU15 Leading operator EU15 Competitors

4.5. MOBILE BASKET

The analysis of national (as opposed to roaming) mobile services is based on the OECD baskets for digital mobile

services. Due to significant changes in usage patterns, the OECD baskets have been redefined with effect from August

2002. The new baskets are not comparable with the “old” ones, in that they contain an SMS element, they include calls

to several mobile networks, and they do not cover international calls.

The new revised baskets are used in this analysis. There are 3 different baskets, based on low, medium and high usage

levels. All packages analysed in this study are Post-Paid packages. Some of the main properties of the new OECD

baskets are:

• Low usage basket with:

25 outgoing calls per month + 30 SMS

42% of calls are to fixed line phones, 58% to mobile phones

• Medium usage basket with:

75 outgoing calls per month + 35 SMS messages


• High usage basket with:

150 outgoing calls per month + 42 SMS messages


Each basket also has a unique definition of time of day distribution and call duration, and includes the monthly rental,

and any registration charges distributed over 3 years.

The two most prominent operators in each country are covered, based on available subscriber numbers. All relevant

packages from each operator are considered, but the final results presented here only show the cheapest package for

each basket.

The asterisk (*) behind the package name means that the package name and its structure have changed between 2004

and 2005. The package chosen at any time is the cheapest package from that provider for the usage profile in question.

This may give rise to significant price changes over time.

The balance of fixed and usage in the mobile baskets varies considerably between countries, as the preferred packages

in some countries contain a lot of calling time included in the fixed charge.

A full description of the methodology can be found at the end of this report.

EN 52 EN

Figure 50


5.5

5.9

6.0

6.4

7.5

7.6

8.7

9.5

9.6

9.9

9.9

10.1

10.8

10.8

10.9

11.1

11.4

11.7

11.8

12.1

12.5

14.0

14.4

15.1

15.4

15.8

16.6

16.7

17.5

18.0

18.6

19.0

19.2

19.4

19.7

20.3

20.5

20.7

21.2

21.2

22.3

22.9

23.3

23.3

25.4

27.0

30.2

36.0

37.8

0 5 10 15 20 25 30 35 40

































Portugal, Vodafone, Total 30 *













UK, O2, O2 25 *




Euro per month

2005

2004

Entries with an asterisk (*) after the name have changed the package name and structure since last year.

EN 53 EN

Figure 51


12.7

16.5

16.7

16.9

18.2

18.8

19.2

19.3

19.7

20.5

21.3

22.5

23.3

24.6

25.2

26.7

28.1

28.9

29.1

30.3

31.7

31.9

32.0

32.1

32.6

33.3

34.7

35.6

35.7

37.2

37.2

38.5

40.4

40.6

40.7

42.9

43.4

43.4

43.8

43.9

47.9

47.9

48.6

48.8

49.5

49.5

52.4

53.9

58.1

0 10 20 30 40 50 60 70

































UK, O2, O2 100 *

















Euro per month

2005

2004

Entries with an asterisk (*) after the name have changed the package name and structure since last year.

EN 54 EN

Figure 52


20.0

30.4

30.9

32.1

33.2

33.3

34.5

37.4

37.6

39.0

40.7

43.8

45.1

45.3

46.4

46.7

50.9

51.5

51.5

52.1

53.6

54.1

55.1

55.7

56.3

57.1

57.2

58.1

59.3

61.0

64.1

65.2

66.2

68.6

70.3

71.3

71.8

72.9

72.9

76.3

78.7

82.6

83.1

87.0

89.2

92.8

94.4

98.8

103.9

0 20 40 60 80 100 120



















UK, O2, O2 200 *































Euro per month

2005

2004

Entries with an asterisk (*) after the name have changed the package name and structure since last year

EN 55 EN

EN 56 EN

5. NUMBER PORTABILITY

5.1. FIXED NUMBER PORTABILITY

Fixed number portability (FNP) enables subscribers to retain their number when they move from one operator to

another. Although it was slow to take off, there has been major increase in numbers ported during this year suggesting a

more competitive environment where customers are changing operator in greater numbers.

Prices for fixed number portability refer to the amount charged by the incumbent to the recipient operators for porting a

telephone number. This price may vary depending on a number of factors.

Figure 53

Fixed ported numbers and price of fixed number portability, October 2005

820 000

24 307

1 000 000

50 826

1 182 738

1 357

98 513

57 042 228 731

25 000

600 000

13 408

2 606

232

1 167 984

193 665

852 605

1 710 651

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

1 600 000

1 800 000

BE DK EE EL ES FR IE IT CY LT LU HU NL AT PT FI SE UK

Numbers ported

0

5

10

15

20

25

30

Price of number portability (€)

August 2003 August 2004 October 2005 Price Fixed Number Portability 2005

Belgium: Figures refer to July 2005 and include non-geographic numbers. Price refers to a simple installation. For a complex installation there is a € 89.7 one-off fee.

Czech Republic: Data not comparable.

Denmark: Figures refer to July 2005 and include non-geographic numbers. Numbers that have been ported repetitively are counted several times Spain, Greece and Netherlands: Figures include non-geographic numbers.

Germany, Slovenia: Data not available. In Germany the price is € 6.74

France: Maximum price is € 15. France, Italy, Lithuania, Austria, Portugal, Sweden: Geographic numbers only.

Ireland: Geographic numbers only. Price for a single line. Price falls to € 3.96 per line for orders above 100 lines. Cyprus: Data as at 1 June 2005

Hungary, Portugal: The figure does not refer to aggregated portings. If the same number has been ported twice in the same year only one transaction

is recorded. Netherlands: The price for number portability (€ 9.08 incl. VAT) refers to the maximum amount each recipient-operator (fixed and mobile) is allowed

to charge to the end user for the administrative costs regarding the porting of the number.

Latvia, Malta, Poland and Slovakia: Fixed number portability not available Finland: The price is an average, as charges vary according to each operator, from 10 to 151 euros.

Sweden: Aggregated number of transactions for geographic-numbers only. The exact amount of ported numbers is not available.

France, United Kingdom: NRA estimates.

EN 57 EN

5.2. MOBILE NUMBER PORTABILITY

Mobile number portability (MNP) only became compulsory in the EU with the entry into force of the new regulatory

framework on 25 July 2003. However, many Member States had already introduced MNP in advance to develop

competition on the mobile market. Mobile number portability (MNP) allows subscribers to retain their number when

they move from one operator to another. The number of ported numbers has increased significantly during the year.

Figure 54

Mobile ported numbers and price of mobile number portability, October 2005

931 874

1 397 000

670 214

38 560

45 205

458 900

330 000

5 051 440

4 075

84 572

1 230 356

67 730

64 764

2 774 000

1 334 879

55 573

12 264

6 171 680

4 413 152

1 000 000

2 000 000

3 000 000

4 000 000

5 000 000

6 000 000

7 000 000

BE DK DE EE EL ES FR IE IT CY LT LU HU NL AT PT FI SE UK

Numbers ported

0

5

10

15

20

25

Price of number portability (€)

August 2003 August 2004 October 2005 Price Mobile Number Portability 2005

Belgium: Figures refer to July 2005. Price refers to a simple installation. For a complex installation there is a € 23.41 one-off fee. Denmark: Numbers that have been ported repetitively are counted several times.

Ireland: Data refer to July 2005

Cyprus: Data refer to June 2005 Netherlands: The price for number portability (€ 9.08 incl. VAT) refers to the maximum amount each recipient-operator (fixed and mobile) is allowed

to charge to the end user for the administrative costs regarding the porting of the number.

Czech Republic, Latvia, Malta, Poland, Slovakia: Mobile number portability unavailable France, Hungary, Austria and United Kingdom: Price is subject to commercial negotiation. In France the maximum price is € 15.

Hungary: The figure does not refer to aggregated portings. If the same number has been ported twice in the same year only one transaction is

recorded. Slovenia: Data not available.

Finland, Sweden: Number of transactions. The exact amount of ported numbers is not available.

EN 58 EN

6. BROADBAND ACCESS AND PRICING

6.1. BROADBAND ACCESS DEFINITIONS

This section provides data on the number and type of broadband lines supplied by both incumbent operators and new

entrants in the EU. It also contains information on access lines provided by means of alternative technologies such as

wireless access (WLL), satellite and cable modems.

Information has been provided by the national regulatory authorities through the ONP COM02-18 questionnaire on data

for local broadband access. Given the rapid developments in this sector, it has been agreed with NRAs to update the

ONP questionnaire on a regular basis in January, July and October. Unless otherwise stated, the data below refer to the

market situation at 1 October 2005.

The definitions used in the charts and data below are as follows: :

- Fully unbundled lines: Fully unbundled lines supplied to other operators, excluding experimental lines. In the case of

full unbundling, a copper pair is rented to a third party for its exclusive use. As fully unbundled lines (ULL) supplied by

the incumbent operator to the new entrants could in principle be used for services other than broadband, the total

number of ULL for access to internet will be lower than the total number of ULL.

- Shared access lines supplied by the incumbent to new entrants: Shared access lines supplied to other operators,

excluding experimental lines. In the case of shared access, the incumbent continues to provide telephony service, while

the new entrant delivers high-speed data services over that same local loop.

- Bitstream access: Supplied to new entrants. Bitstream access refers to the situation where the incumbent installs a

high-speed access link to the customer premises and then makes this access link available to third parties, to enable

them to provide high-speed services to customers. Bitstream depends in part on the PSTN and may include other

networks such as the ATM network. Bitstream access is a wholesale product that consists of the provision of

transmission capacity in such a way as to allow new entrants to offer their own, value-added services to their clients.

The incumbent may also provide transmission services to its competitor, to carry traffic to a 'higher' level in the network

hierarchy where new entrants may already have a broadband point of presence.

- Simple resale: In contrast to bitstream access, simple resale occurs where the new entrant receives and sells on to end

users - with no possibility of value added features to the DSL part of the service - a product that is commercially similar

to the DSL product provided by the incumbent to its own retail customers, irrespective of the ISP service that may be

packaged with it. Resale offers are not a substitute for bitstream access because they do not allow new entrants to

differentiate their services from those of the incumbent (i.e. where the new entrant simply resells the end-to-end service

provided to him by the incumbent on a wholesale basis).

- Incumbent's DSL lines: Provided to end users by the incumbent, its subsidiaries or partners (for example an associated

company such as a joint venture providing ISP services),

- WLL: Internet broadband connections by means of wireless local loop (sometimes referred to as fixed wireless access)

- Cable modem: Internet broadband connections by means of cable TV access

- L.L.: Internet broadband connections by means of dedicated capacity (Leased Lines) provided over metallic copper

pairs, including tail ends or partial circuits. “Incumbent's leased lines” includes only retail lines and excludes lines

provided to other operators. “New entrants' leased lines” includes all retail lines provided to end users, even if based on

wholesale lines supplied by the incumbent.

- Other: Internet broadband connections by means of 3G, satellite, fibre optic, powerline communications, etc.

- Retail access: Access provided to end users.

- Incumbents are defined as the organisations enjoying special and exclusive rights or de facto monopoly for provision

of voice telephony services before liberalisation, regardless of the role played in the provision of access by means of

technologies alternative to the PSTN.

- “New entrants” refers to alternative telecommunications operators, as well as internet service providers (ISPs).

- Broadband capacity: Capacity equal to, or higher than, 144 Kbit/s.

EN 59 EN

6.2. WHOLESALE ACCESS

This section shows the availability of wholesale access lines supplied by incumbent operators to new entrants. Separate

figures are provided for fully unbundled lines, shared access and bitstream access.

Data from the New Member States are included when available. As can be seen from the table at the end of this section,

data are not always available, especially as regards wholesale lines.

The table below shows the number of agreements between operators for ULL, shared access, bitstream and resale as at

1 October 2003, 2004 and 2005.

Table 1 Number of agreements for full ULL, shared access, bitstream access and resale, 2003-2005.

N. of agreements on fully unbundled lines

N. of agreements on shared lines

N. of agreements on Bitstream access

N. agreements on resale lines

Oct. 03 Oct. 04 Oct. 05 Oct. 03 Oct. 04 Oct. 05 Oct. 03 Oct. 04 Oct. 05 Oct. 03 Oct. 04 Oct. 05

BE 8 8 8 8 8 8 10 11 11 22 25 27

CZ 0 4 4 0 2 4 0 0 n.a. 0 21 19

DK 13 17 17 4 10 6 9 10 11 0 0 10

DE 81 86 99 7 9 16 0 0 3 0 8 n.a.

EE 0 7 n.a. 0 0 0 0 21 3 1

EL 7 11 12 0 1 1 0 8 10 0 0

ES 9 11 13 9 11 12 37 30 30 n.a. n.a. n.a.

FR 9 13 21 9 13 21 5 5 5 20 20 20

IE 1 3 3 1 3 3 2 8 9 - 0

IT 31 27 26 2 4 6 150 211 234 0 0

CY 0 n.a. 0 n.a. 0 n.a. n.a. n.a. n.a.

LV 0 0 2 0 1 2 0 0 11 0 11

LT 0 0 0 0 0 17 16 0 0

LU 2 3 3 2 3 4 0 0 1 4 5

HU 0 2 6 0 0 1 0 18 17 0 0

MT 0 0 0 0 0 0 0 16 19

NL 12 12 10 12 12 10 1 1 1 0 0

AT 17 20 26 0 20 26 38 38 38 0 0

PL 0 0 0 0 0 0 0 0

PT 4 2 2 n.a. 1 1 8 9 8 0 0

SI 0 0 0 1 3 0 4 10 0 0 3

SK 0 0 0 0 0 0 0 0

FI n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

SE 74 116 122 74 116 122 26 26 26 12 n.a. n.a.

UK 57 59 44 7 12 22 n.a. 28 49 602 801 780

EU 325 401 418 135 227 268 286 424 489 678 909 884

Figure 55 shows the distribution of wholesale access lines supplied by the incumbent operators to new entrants. There

has been a huge surge of 100% in wholesale unbundled local loops (fully unbundled lines and shared access lines), from

4.3 million in October 2004 to more than 8.7 million, in October 2005, representing 5% of the PSTN lines in the EU15.

This increase comprises approximately 2.4 million fully unbundled lines and 2 million shared access lines. The number

of shared access lines increased from 1 534 956 to 3 558 205 lines, while fully unbundled lines went up from 2 814 201

to 5 212 691.

EN 60 EN

Figure 55

2003

2004

2005Fully unbundled

lines Shared access

lines Bitstream

accessResale

5 212 691

2 814 201

1 843 121

3 558 205

1 534 956

272 803

5 153 440

3 094 945

916 987

4 994 893

2 635 742

1 776 931

1 000 000

2 000 000

3 000 000

4 000 000

5 000 000

6 000 000

Availability of wholesale access in the EU

Incumbent's PSTN activated main lines (million): 196.3

Fully unbundled lines Shared access lines Bitstream access Resale

TOTAL: 18 919 229

Figure 56

EU wholesale fully unbundled lines by Member State

6 760 1 035

62 567

3 607 3 883

132 416

2 186 2 964

68 880

97 044

43 127 45 185

61 466

360 788

221 578

75 000

150 000

225 000

300 000

375 000

BE CZ DK DE EE EL ES FR IE IT LU NL AT PT FI SE UK

October 2004 October 2005

DE not to scale

Value:2 936 000

IT not to scale

Value: 1 163 195

EN 61 EN

Figure 57

EU wholesale shared access broadband lines by Member State

1 909 4 158

62 082

5 352 1 530

228 870

1 448

110 975

98 75 6

63 962

287 060

49 361

588 247

100 000

200 000

300 000

400 000

500 000

600 000

BE CZ DK DE EL ES FR IE IT LU NL AT PT FI SE UK


FR not to scale

Value:2 153 072

Figure 58

EU wholesale bitstream access broadband lines by Member State

183 076

94 741

105 071

36 610 1 199 2 685

86 279 94 900

47 169 2 739

79 622

3 200

717 736

1 168 000

789 705

200 000

400 000

600 000

800 000

1 000 000

1 200 000

BE DK DE EL ES FR IE IT CY LV LT LU HU AT PT SI FI SE UK


FR not to scale

Value: 1 740 708

Data for 2004 may include lines sold to the incumbents' retail divisions and ISPs

6.3. RETAIL BROADBAND ACCESS

This section provides information on the deployment of broadband access lines by incumbents (and their subsidiaries or

partners) and by new entrants (alternative telecom operators or Internet Service Providers) to end-users.

Internet broadband access can be provided by different means: DSL lines, wireless local loop (WLL), cable TV access

(cable modem), dedicated leased lines and other access (like satellite, fibre optic, powerline communications, etc.)

New entrants’ DSL lines can be provided to end users by means of fully unbundled or shared access lines, bitstream

access or resale.

In all the charts below on fixed broadband retail lines the data refer to 1 October 2005. In some cases only estimates are

available.

The charts below only include fixed broadband lines.

EN 62 EN

Figure 59 shows the total number of broadband access lines for each Member State, provided by both incumbents and

new entrants, and including all types of fixed broadband connections.

Figure 59

EU broadband lines by Member State, October 20056 milion

29 331

44 819

60 972

98 769

102 842

112 258

162 445

170 946

197 289

219 369

513 304

566 876

657 030

1 020 035

1 064 670

1 141 407

1 217 864

1 739 680

1 878 308

3 879 236

4 529 374 5 846 320

8 943 019

8 946 355

9 481 885

1 000 000

2 000 000

3 000 000

4 000 000

5 000 000

6 000 000

7 000 000

8 000 000

9 000 000

10 000 000

CY MT LU SK LV EL EE SI LT IE HU CZ PL AT FI PT DK SE BE NL ES IT UK FR DE

DSL lines Other technologies (cable, satellite, wireless local loop, PLC, FTTH)

July 03

BE (January), HU

The following chart presents the number of broadband lines per Member State in October 2004 and October 2005.

Figure 60

Total fixed broadband retail lines

1 878 308

566 876

1 217 864

162 445

112 258

219 369

29 331

102 842

197 289

60 972

513 304

44 819 1 020 035

657 293

1 141 407

170 946

98 769 1 064 670

1 739 680

8 946 355

5 846 320

9 481 885

3 879 236

8 943 019

4 529 374

1 000 000

2 000 000

3 000 000

4 000 000

5 000 000

6 000 000

7 000 000

8 000 000

9 000 000

10 000 000



EN 63 EN

The following two charts show the breakdown of broadband lines according to the two main types of technologies.

Figure 61 shows the number of DSL lines. Cable modem is the most common alternative technology, followed by fibre

to the home. Other technologies are still marginal.

Figure 61

Total DSL retail lines

1 166 974

251 776

769 832

78 160

110 484

167 383

28 197

58 883

84 606

54 446

335 810

26 119

574 135

452 622

646 555

108 346

80 572

839 583

1 124 445

3 482 952

2 344 236

6 459 038

5 497 127

8 396 355

9 154 060

1 000 000

2 000 000

3 000 000

4 000 000

5 000 000

6 000 000

7 000 000

8 000 000

9 000 000

10 000 000



Figure 62

Total fixed broadband retail lines with technologies other than DSL

711 334

315 100

448 032

327 825

84 285

1 774

550 000

51 986 349 193

1 134

43 959

112 683

6 526

177 494

18 700

445 900

204 671

494 852

62 600

18 197

225 087 615 235

2 483 981

1 046 422

1 535 000

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000



EN 64 EN

The following charts provide information on the national broadband markets according to the technology used and the

type of operator. Figure 63 shows that DSL is the predominant technology in the EU. On average, 80% of the EU25

broadband lines use DSL technologies and only in three countries DSL lines represent less than 50% of the overall

market.

Figure 63

Total fixed broadband retail lines by technology, October 2005

43%

44%

48%

56%

57%

57%

58%

60%

62%

63%

63%

65%

65%

69%

72%

76%

77%

79%

80%

82%

89%

94%

94%

96%

97%

98%

57%

56%

52%

44%

43%

43%

42%

40%

38%

37%

37%

35%

35%

31%

28%

24%

23%

21%

20%

18%

11%

6%

6%

4%

2%

3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

LT CZ EE AT PT LV MT NL BE DK SI SE HU PL UK IE ES FI EU25 SK LU FR IT CY DE EL

DSL Other means

With regard to the market share of fixed incumbent operators and new entrants, Figure 64 indicates that, on average,

incumbent operators control 50% of broadband lines.

Figure 64

Fixed broadband retail lines market share by operator, October 2005

25%

27%

36%

39%

40%

42%

43%

45%

48%

50%

52%

53%

53%

57%

59%

60%

62%

63%

65%

67%

70%

74%

76%

78%

82%

100%

75%

73%

64%

61%

60%

58%

57%

55%

52%

50%

48%

47%

47%

43%

41%

40%

38%

37%

35%

33%

30%

26%

24%

22%

18%

0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

UK MT SE AT CZ LT NL FR BE EU25 ES HU EE LV IE DK SI PL DE FI IT EL LU PT SK CY

Incumbents New entrants

EN 65 EN

Figure 65 presents the market share by operator in the DSL retail market. At EU25 level the fixed incumbent operator

provides 61% of DSL lines. In 10 Member States the incumbent operator sells more than 80% of all DSL retail lines.

Figure 65

DSL retail lines market share, October 2005

34%

47%

48%

56%

61%

67%

67%

68%

69%

72%

72%

73%

74%

74%

76%

78%

84%

85%

88%

92%

96%

97%

98%

98%

100%

100%

4%

3%

2%

2%

0%

0%

8%

12%

15%

16%

22%

24%

26%

26%

27%

28%

28%

31%

32%

33%

33%

39%

44%

52%

53%

66%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

UK MT FR SE EU25 ES DE FI AT NL DK IT EL HU IE BE LU PT CZ PL SI LT EE LV CY SK

Incumbents New entrants

The next series of charts provide further information on the trends observed in the three segments analysed previously.

As can be see in figure 66, new entrants are steadily increasing their presence in the overall broadband market, with an

average 50% market share against 44% a year ago. This trend is however not uniform, and in 9 countries, Czech

Republic, Estonia, Lithuania, Luxembourg, Hungary, Austria, Poland, Slovenia and Slovakia the fixed incumbent

operator has increased its market share.

Figure 66

Trends in the fixed broadband retail lines market share: New entrants

50%

68%

36%

14%

50%

22%

45%

52%

34%

28%

0%

40%

65%

26%

48%

67%

52%

66%

50%

19%

40%

23%

28%

61%

75%

52%

60%

40%

35%

47%

26%

48%

55%

41%

30%

43%

58%

24%

47%

73%

57%

61%

37%

22%

38%

18%

33%

64%

75%

44%

50%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

BE CZ DK DE EE EL ES FR IE IT CY LV LT LU HU MT NL AT PL PT SI SK FI SE UK EU25


EN 66 EN

With regard to the trend in the number of DSL lines sold by incumbent operators in the same period, there has been a

reduction of 8 percentage points on average, from 69% in October 2004 to 61% in October 2005.

Figure 67

Trends in the DSL retail lines market share: Incumbents

81%

90%

75%

88%

100%

85%

73%

50%

75%

77%

100%

99%

93%

81%

74%

39%

76%

68%

100%

91%

98%

100%

76%

62%

38%

69%

78%

88%

72%

67%

98%

74%

67%

48%

76%

73%

100%

98%

97%

84%

74%

47%

72%

69%

92%

85%

96%

100%

68%

56%

34%

61%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%



As can be seen from Figure 68 the number of DSL lines has increased in the overall broadband retail market,

representing 80% of all broadband lines as against 78% in October 2004. However, in a number of countries other

technologies have increased at a higher rate.

Figure 68

Trends in DSL retail lines as % of total broadband access lines

62%

35%

67%

98%

49%

90%

75%

93%

86%

93%

100%

60%

38%

89%

65%

85%

63%

50%

50%

46%

60%

77%

73%

62%

65%

78%

62%

44%

63%

97%

48%

98%

77%

94%

76%

94%

96%

57%

43%

89%

65%

58% 60%

56%

69%

57%

63%

82%

79%

65%

72%

80%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%



EN 67 EN

The following chart shows the penetration rate for broadband lines measured as the total number of broadband lines

divided by the total population. The broadband penetration rate varies significantly across Member States ranging from

1% in Greece to 24% in Denmark.

Figure 69

EU Broadband penetration rate, 1 October 20053.91%

4.46%

5.08%

5.34%

5.55%

5.76%

8.56%

10.00%

10.52%

10.84%

11.13%

12.06%

12.43%

13.40%

14.77%

14.90%

17.98%

19.31%

20.33% 22.51%

23.79%

11.45%

11.49%

13.00%

3.43%1.83%

1.72%

1.01%

0%

5%

10%

15%

20%

25%

EL PL SK EU10 CY LV HU IE CZ LT SI IT ES PT MT EU25 DE EE AT EU15 LU FR UK BE SE FI DK NL

October 05

EN 68

EN

Availability of wholesale access October 2005

Fully unbundled lines supplied by the incumbent to new entrants

Shared access lines supplied by the incumbent to new entrants

Wholesale DSL lines supplied

Bitstream access Simple resale

Country

Incumbent's PSTN activated

main lines Unbundled

lines Requested

lines N. of

agreements Shared lines

Requested lines

N. of agreements

No. of lines No. of agreements

Resale No. of lines

No. of agreements

BE 4,317,833 6,760 175 8 1,909 8 183,076 11 74,251 27

CZ 3,249,000 1,035 n.a. 4 4,158 n.a. 4 n.a. n.a. 50751 19

DK 3,310,209 62,567 n.a. 17 62,082 na 6 94,741 11 12041 10

DE 36,000,000 2,936,000 99 5,352 16 3 1,100,000 n.a.

EE 411,000 3,607 3,670 n.a. n.a. 1

EL 5,500,000 3,883 396 12 1,530 48 1 105,071 10

ES 15,642,543 132,416 10,404 13 228,870 26,287 12 789,705 30

FR 33,399,373 360,788 21 2,153,072 21 1,740,708 5 146,056 20

IE 1,453,000 2,186 409 3 1,448 15 3 36,610 9

IT 25,449,000 1,163,195 20,441 26 110,975 148,831 6 1,168,000 234

CY 401,368 n.a.

LV 624,000 2 2 1199 11

LT 768,843 2,685 16

LU 241,000 2,964 60 3 98 8 4 6,748 5

HU 3,420,000 10 6 1 86,279 17

MT 205,000 13,803 19

NL 7,067,000 68,880 n.a. 10 588,247 n.a. 10 1

AT 2,859,700 97,044 4,704 26 75 n.a. 26 94,900 38

PL 8,967,000

PT 3,832,705 43,127 4,258 2 6 1 47,169 8

SI 700,000 1,219 3 2,739 10 1375 3

SK 1,181,314

FI 2,267,706 221,578 n.a. n.a. 63,962 n.a. n.a. 79,622 n.a. n.a. n.a.

SE 5,400,000 45,185 n.a. 122 287,060 n.a. 122 3,200 26 156,000 n.a.

UK 29,600,000 61,466 52 49,361 28 717,736 47 3,433,868 783

EU15 4,317,833 6,760 175 8 1,909 8 183,076 11 74,251 27

EU10 3,249,000 1,035 n.a. 4 4,158 n.a. 4 n.a. n.a. 50751 19

EU25 3,310,209 62,567 n.a. 17 62,082 na 6 94,741 11 12041 10

EN 69

EN

BROADBAND RETAIL LINES, OCTOBER 2005

October 2005 New entrants' DSL lines on PSTN October 2005 Incumbents' access lines by other means New entrants' access lines by other means

Incumbent's DSL lines

Full ULL Shared access

Bitstream access

Resale Total WLL Cable modem

Leased lines

3G Fiber to the home

Satellite PLC Other Total WLL Cable modem

Leased lines

3G Fiber to the home

Satellite PLC Other Total

BE 909 091 4 047 1 964 177 621 74 251 257 883 2 77 709 183 1 991 81 711 332

CZ 221 276 30 500 n.a. n.a. n.a. 30 500 1 100 n.a. n.a. 2 000 3 100 180 000 120 000 n.a. 8 000 4 000 n.a. 312 000

DK 556 694 56 272 64 184 78 217 14 465 213 138 2 802 169 033 3 331 3 363 178 529 4 392 183 497 4 408 10 060 80 88 66 978 269 503

DE 6 148 708 1 900 000 5 352 1 100 000 3 005 352 42 804 n.a. n.a. 3 421 46 225 n.a. 222 000 n.a. n.a. n.a. 50 000 9 600 281 600

EE 76 410 1 690 60 1 750 1 042 8 077 93 9 212 2 469 45 077 715 15 570 11 242 75 073

EL 82 002 3 883 1 530 23 069 28482 632 632 324 608 210 1142

ES 2 331 961 132 416 228 870 789 705 1 150 991 1 400 n.a. n.a. 3 265 4 665 10 787 990 011 32 108 2 719 849 3 405 1 878 1 041 757

FR 3 995 731 360 788 2 153 072 1 740 708 146 056 4 400 624 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 550 000 n.a. n.a. n.a. n.a. n.a. n.a. 550 000

IE 127 139 2 186 1 448 36 610 40 244 n.a. n.a. 2 186n.a. n.a. n.a. n.a. n.a. 2 186 24 600 18 400 5 000 1 800 n.a. 49 800

IT 4 039 000 562 105 103 542 791 013 1 467 1 458 127 546 131 58 870 230 59 777 690 20 4 017 197 687 87 000 289 416

CY 28 197 n.a. n.a. n.a. n.a. 0 n.a. n.a. 165 n.a. n.a. n.a. n.a. 951 1116 n.a. 18 n.a. n.a. n.a. n.a. n.a. 18

LV 57 981 414 1 278 209 902 310 n.a. n.a. n.a. n.a. 310 3 018 14 343 6 595 920 6 10 18 757 43 649

LT 81 921 2 685 2 685 156 66 222 15 489 43 312 1 178 10 623 1 41 858 112 461

LU 45 601 1 999 98 6 748 8 845 608 168 776 49 5 670 10 21 5 750

HU 249 521 10 86 279 86 289 1 300 18 194 1 500 n.a. n.a. n.a. 20 994 8 000 144 000 3 500 1 000 n.a. n.a. 156 500

MT 12 316 13 803 13 803 18 700 18 700

NL 1 687 109 68 880 588 247 n.a. 657 127 n.a. n.a. n.a. n.y.a. 1 535 000 n.a. n.a. n.a. n.a. n.a. 1 535 000

AT 394 276 81 171 75 98 613 179 859 n.a.n.a. n.a. n.a. 2 000 429 000 1 500 n.a. 1 000 n.a. 4 600 7 800 445 900

PL 416 233 36 389 36 389 3 234 175 562 24 908 58 0 646 204 408

PT 547 541 40 621 6 58 387 n.a. 99 014 n.a. 341 000 1 255 n.a. n.a. n.a. n.a. 342 255 1 644 147 414 2 039 n.a. n.a. n.a. 1 500 n.a. 152 597

SI 104 232 2 739 1 375 4 114 647 n.a. 314 961 491 60 045 888 15 200 61 639

SK 80 572 174 174 1 200 16 823 n.a. 18 023

FI 569 626 126 373 63 962 79 622 269 957 748 76 211 60 67 480 144 499 2 782 63 088 204 934 13 580 80 588

SE 633 000 45 185 287 060 3 200 156 000 491 445 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 9 000 300 000 n.a. n.a. 305 000 1 150 85 n.a. 615 235

UK 2 196 607 61 466 49 361 717 736 3 433 868 4262431 0 2 500 2 475 481 6 000 2483981

EU15 24 264 086 3447392 3548771 4594501 4932855 16 523 519 4950 586852 50924 0 191 65556 0 71073 779 546 58845 7628764 51681 0 516670 146879 20212 90550 8 513 601

EU10 1 328 659 69 003 1 91 981 15 447 176 432 3 752 18 841 1 995 10 457 1 044 36 089 213 901 637 862 36 914 37 059 4 022 10 72 703 1 002 471

EU25 25 592 745 3 516 395 3 548 772 4 686 482 4 948 302 16 699 951 8 702 605 693 52 919 10 648 65 556 72 117 815 635 272 746 8 266 626 88 595 553 729 150 901 20 222 163 253 9 516 072

EN 70 EN

6.4. PRICES FOR UNBUNDLED LOCAL LOOP

This section shows the charges for connection and the monthly rental per unbundled loop for both full unbundled access

and shared access to the loop.

Estimates of the total average monthly cost are calculated on the basis of the price of the monthly rental + 1/36 of the

connection fee. In previous years the connection fee was amortised over 12 months, therefore these data are not

comparable to the data presented in previous reports.

Price excludes co-location costs.

It is assumed that the loop is active (exc. Estonia) and it will be used to provide both telephony and DSL services.

Charges in some Member States may be different in the case of subsequent access. Only the price for a single line is

shown here.

6.4.1. Prices for full unbundled local loop

Belgium: Monthly rental for a Type 2 connection, i.e. Telephony usage and low frequency data + HF data: ADSL,

SDSL, xDSL. Connection fee: Type 2 “active loop”. For a non-active loop the connection fee is 59.56. A

supplementary fee of 16.30 for disconnection is also charged.

Denmark: An additional DKK 514 is paid if there is no existing cable termination point.

Germany: Monthly rental price valid until 31.03.2007. Connection fee price valid until 30.06.2007. The connection fee

does not include installation costs at end user premises.

Greece: The cost audit for 2005 is still in progress and may affect prices.

Estonia: Price for new loops only.

Spain: Additional wiring within premises is invoiced separately.

Ireland: This connection charge applies where there is an existing metallic path. The connection charge is reduced as the

cumulative volume of orders increases. On the first day of the month following 20,000 provisioning orders being

completed the charge will be €55, on the first day of the month following 50,000 provisioning orders being completed

the charge will be €52 and on the first day of the month following 100,000 provisioning orders being completed the

charge will be €49. The monthly rental charge will be adjusted by the change in CPI annually on 1 December until

2007..

Italy: The ULL connection fee was 42.00 € from 01/01/04 to 16/06/04. It includes POTS and ADSL.

Luxembourg: Price includes includes POTS and ADSL and a charge for a technical expertise.

Latvia: A single fee of LVL 27.08 is charged for a technical expertise (included in the figure).

Hungary: Matáv charges HUF 37644 (included in the figure) to check whether the line is suitable for unbundling.

Netherlands: Charges since 1 July 2004 until the implementation of the new regulatory framework, planned for early in

2006. The monthly rental price does not include the price of the DSLAM. Telco's provide their own DSLAMs.

Austria: Prices are currently being reviewed. Connection costs vary depending on the retention period (31.50 for 1 year

retention/54.50 if no retention period).

Portugal: Prices do not include technical test, which are optional.

Slovakia: According to the R.U.O. of Slovak Telecom

Finland: Weighted average of 40 SMP operators providing ULL. Prices vary between 7.9 and 21 € for the monthly

rental and between 80 and 212 € for the connection.

EN 71 EN

Figure 70

Prices per full unbundled loop - Connection EU25 weighted average: 2005: € 52.11 2004: € 75.46

EU15 weighted average: 2005: € 46.22 2004: € 66.53

57 339

46 48 57 36 22 79 122

37 64 50 95 186

150

29 55 84 74 168

165

129

156

48

43

57

55

22

50 58

37

33

50

59

150

54

29

55

41

38

69

163

139

140

5156 59

0

20

40

60

80

100

120

140

160

180

200


€

Connection August 2004 Connection October 2005

EU22 avg. connection 2004 EU25 avg. connection 2005

CZ not to scale

Value: 339.1

Figure 71

Prices per full unbundled loop - Monthly rentalEU25 weighted average: 2005: € 10.55 2004:€ 11.19


11.6

16.6

8.6

11.8

8.9

10.4

11.4

10.5

16.8

8.3

11.9

8.4

12.5

15.8

11.7

9.6

10.9

12.0

15.3

11.3

11.3

12.9

11.6

13.6

9.0

10.7

8.9

11.4

9.5

14.7

8.3

9.6

8.4

7.8

12.9

11.7

11.1

9.6

10.9

14.8

9.7

14.5

14.1

11.2

11.3

9.8

8.1

0

2

4

6

8

10

12

14

16

18


€

Monthly rental August 2004 Monthly rental October 2005

EU22 avg. monthly rental 2004 EU25 avg. monthly rental 2005

EN 72 EN

Figure 72

Monthly average total cost per full unbundled loop, 2004 & 2005

9.3

15.1

11.4

9.8

9.9

10.4

13.6

10.5

14.3

12.7

16.5

12.9

13.1

12.0

13.3

12.4

13.1

20.9

16.0

15.9

15.9

20.2

17.4

26.0

9.3

9.4 9.6 9.8

10.3

10.4

10.5

10.5

10.8

10.9

11.2

11.3

11.8

12.0

12.0

12.4

12.6 13.2 14.5

15.1

15.2 15.9

15.9

16.3

16.5

17.9 18.6

0

3

5

8

10

13

15

18

20

23

25

28

IT LT EL LV DK NL CY EE PT FR UK EU15 DE ES EU25 AT MT BE LU FI SE HU PL IE SI CZ SK

€

Aug-04 Oct-05

Estimates are based on the total cost for the loop for 3 years.

6.4.2. Prices for shared access local loop

Belgium: The price is quoted exclusive of the splitter (€ 131/year for 48 splitters). A supplementary fee of €28.33 for

disconnection is also charged.

Denmark: An additional DKK 514 is paid if there is no existing cable termination point. The price does not include the

splitter.

Germany: Price valid until 30.06.2007.

Estonia: Price for new loops only.

Spain: Additional wiring within premises is invoiced separately. Price is exclusive of splitter.

France: Figures include the filter.

Greece: The cost audit for 2005 is still in progress and may affect prices.

Ireland: This connection charge applies where there is an existing metallic path. Price exclusive of splitter. The national

regulatory authority is currently in consultation on this charge. The connection charge will be reduced as the cumulative

volume of orders increases. On the first day of the month following 20,000 provisioning orders being completed the

charge will be €55, on the first day of the month following 50,000 provisioning orders being completed the charge will

be €52 and on the first day of the month following 100,000 provisioning orders being completed the charge will be

€49.Italy: The connection fee was 58,40 € from 01/01/04 to 16/06/04. Connection costs vary depending on the splitter

being provided by Telecom Italia (39euro) or by other operators (44.5 euro).

Cyprus: The incumbent operator has published its RUO and OCECPR has modified it. There are 2 signed agreements.

Latvia: A single fee of Latvia L 27.08 is charged for a technical expertise (included in the figure).

Luxembourg: Price of the splitter not included. Price includes a charge for a technical expertise.

Hungary: Matáv charges HUF 37644 (included in the figure) to check whether the line is suitable for unbundling.

Netherlands: Charges since 1 July 2004 until the implementation of the new regulatory framework, planned for early in

2006. Monthly rental price does not include the prices of the DSLAM and the splitter. Telco's provide their own

DSLAMs and splitters

Austria: Prices are currently being reviewed [monthly rental: Half of full ULL (5.45); connection: Twice of full ULL

(109) if no retention period]

Portugal: Prices do not include technical test, which are optional.

Slovakia: According to the R.U.O. of Slovak Telecom.

Slovenia: Price includes cost of splitter

Finland: Weighted average of 40 SMP operators providing ULL. Generally the monthly rental is 50% of the monthly

rental of full ULL. Prices for the connection fee vary between 47 and 202 €.

EN 73 EN

Figure 73

Prices per shared access - ConnectionEU25 weighted average: 2005: € 59.13 2004: € 79.40


57

346

36

61

47

30

79

123

45

81

50

122

196

150

37

109

88

69

118

118

123

159

38

51

100

65

30

55

45

36

50

59

81

40

37

109

78

38

69

171

97

83

51

150

56 58

0

20

40

60

80

100

120

140

160

180

200


€

Connection August 2004 Connection October 2005

EU21 avg. connection 2004 EU25 avg. connection 2005

CZ not to scale

Value: 346.2

Figure 74

Prices per shared access - Monthly rentalEU25 weighted average: 2005: € 3.4 2004: € 3.33


1.7

9.3

4.3

2.4

5.2

3.0

2.9

9.0

2.8

7.4

4.2

6.7

7.5

4.3

1.9

5.5

3.0

7.1

5.7

5.4

3.3

1.6

5.3

4.5

2.3

4.7

4.1

3.0

2.9 2.9

1.8

4.2

5.5

4.7

4.3

2.9

1.9

5.5

7.4

3.0

6.3

9.9

5.6

5.4

1.9

7.5

0

1

2

3

4

5

6

7

8

9

10


€

Monthly rental August 2004 Monthly rental October 2005

EU21 avg. monthly rental 2004 EU25 avg. monthly rental 2005

EN 74 EN

Figure 75

Monthly average total cost per shared access, 2004 & 2005

9.67

2.95

3.28

6.71

4.12

3.84

4.04

5.05

5.54

5.31

5.60

6.49

10.04

8.65

8.96

8.97

8.44

12.43

18.912.85

2.95

3.20

3.34

3.74

3.84

4.01

4.01

4.14

4.21

4.39 5.05

5.53

5.60

5.86 6.93

7.11

7.44

7.67

8.20

8.30

8.44

8.48 9.13

9.57

9.75

14.63

5.04

0

2

4

6

8

10

12

14

16

18

20

CY NL BE UK DE ES PT MT IT EU15 FR EU25 DK LV EL LU LT EE SE SI FI HU AT IE PL CZ SK

€

Aug-04 Oct-05

Estimates are based on the total cost for the loop for 3 years.

Figure 76

L.L.U. monthly average total cost in EU15

14.73

13.412.87

11.28

7.35

6.45

5.04

4.21

0

2

4

6

8

10

12

14

16

2002 2003 2004 2005

Euro per month

Fully unbundled lines Shared access lines

EN 75 EN

EN 76 EN

7. PUBLIC VOICE TELEPHONY TARIFFS

This section examines the charging system, the line rental charges and the main tariffs for public fixed voice telephony

charged by the incumbent operators in each Member State in September 2005. The price trend over the past seven years

is also analysed.

The incumbent operators are: Belgacom for Belgium, Cesky Telecom for Czech Republic, TDC for Denmark, Deutsche

Telekom for Germany, Elion for Estonia, OTE for Greece, Telefonica for Spain, France Telecom for France, Eircom for

Ireland, Telecom Italia for Italy, CYTA for Cyprus, Lattelekom for Latvia, Lietuvos Telekomas for Lithuania, P&T

Luxembourg for Luxembourg, Matav for Hungary, Maltacom for Malta, KPN for the Netherlands, Telekom Austria for

Austria, Polish Telecom for Poland, Portugal Telecom for Portugal, Telekom Slovenije for Slovenia, Slovak Telecom

for Slovakia, TeliaSonera for Finland (formerly Sonera), TeliaSonera for Sweden (formerly Telia), and British Telecom

for the United Kingdom.

The incumbent operators still retain a large market share, but new entrants are increasingly gaining market share by

offering cheaper prices for certain types of calls (usually long-distance or international) or destination. The prices

charged by incumbents do not necessarily, therefore, represent the lowest prices available. A comparison between the

rates charged by incumbents and alternative operators for a sample of countries is also shown.

The figures and information are taken from a study carried out for the Commission by Teligen-HI Europe. The data are

collected from primary sources (i.e. directly from the incumbent operators).

NRAs were given the possibility to check these data before finalising this report. All NRAs, with the exception of

Cyprus and Slovakia, provided comments and approved these data.

Different sets of charges for fixed national voice telephony services are shown in the following sections:

- the minimum costs for different types of calls (local, long-distance, international calls and calls towards mobile

networks), depending on the charging system adopted;

- the monthly rental charged by incumbent operators;

- the charges for a composite basket of calls (local, long-distance, international fixed calls and calls to mobile), that

gives an estimate of the average monthly spending by a typical “European business/residential user” for the whole range

(national and international) of calls;

- the charges for a basket of national calls, that gives an estimate of the average monthly spending by a typical

“European business/residential user” for fixed national calls;

- the basket of international calls for each country that indicates the average price of a single call from the originating

country to all other OECD destinations. In addition, the price of individual calls to specific destinations is also shown.

- the price of some individual calls (3- and 10-minute local, long-distance and international calls) at peak time, inclusive

of any initial charge. For incumbents which apply unit-based charging, the price of a whole unit is calculated.

For the various types of calls, a benchmark based on a comparison with US and Japan is also included. For the USA, the

prices for national calls are those charged by Verizon (in New York city) and the prices for international calls are those

charged by AT&T. For Japan, the national call prices are those charged by NTT and the international call prices are

those charged by KDD.

The EU average tariffs shown in the charts are weighted average (by population of the Member States).

7.1. CHARGING SYSTEM

The billing system for public voice telephony services usually comprises two components: an initial charge applied at

the beginning of a call and a charge for the remainder of the call (that may not depend on the type of initial charge

used).

7.1.1. Initial charges

There are different types of charges applied at the beginning of a call, either alone or in combination. The charging

method used for the remainder of the call may not depend on the type of initial charge used. The types of charges are:

• Call set-up charge raised at the start of the call (when the call is answered). This charge does not offer any call time.

Per second or per unit charges apply from the beginning of the call.

• Initial charge that is used in the same way as call set-up, but in addition includes a certain number of seconds call

time before normal time-based charging starts.

EN 77 EN

• The unit charge in effect works the same way as the initial charge: A full unit is charged at the beginning of the call,

providing a certain number of seconds call time until the next unit is charged. Depending on the principle used by

the operator (synchronous/ asynchronous) the number of seconds call time in the first unit may be less than the

specified unit duration.

• Minimum charging is normally used with per second billing, to ensure the operator obtains a minimum revenue per

call. If the call duration is short, the actual call charge may be less than the minimum charge. In such cases the

minimum charge will be applied.

In the calculation of the minimum charge for calls using per second billing the first second of the calls (after it is

answered) is not included, even though this can also be perceived as part of the minimum cost.

7.1.2. Charging system during the call

There are, in principle, 3 ways of charging calls. The fact that most operators tend to publish the duration charges on a

per minute basis does not itself indicate which system is used. The 3 principles are:

1. Real time charging (also known as “per second billing”) allows the cost of the call to be calculated to the

exact duration of the call (normally nearest second). A call set-up charge, initial charge or minimum charge

may be applied to this structure, in addition to the duration charge.

2. Unit based charging uses a fixed price unit.

The duration of this unit will vary with the destination of the call and time of day. Call duration will always

be raised to a multiple of whole units, so the user will nearly always pay for more time than is used. A call

set-up charge may be applied to this structure, but is relatively rare.

3. Fixed period charging uses a variable price, but fixed duration unit. The call is normally charged on a per

minute basis, or per 6 seconds. The price for the period will vary with destination and time of day. The

charged duration of the call will be raised to a multiple of whole periods. A call set-up charge or initial

charge is often implemented in the form of a higher charge for the first minute or period. This initial charge

may vary with destination and time of day.

Call set-up charges may vary according to the type of call (local, long-distance, international, calls to mobile), and for

international calls according to destination. In the case of international calls, the minimum cost of a call may change

according to the destination.

The following charts show the minimum cost, due to initial charges, for local, long-distance and international calls and

calls to mobile charged by the incumbent operators. The free call time (i.e. the number of seconds of call time before

normal time-based charging starts) is shown in brackets. Values are expressed in €-cents, including VAT. It should be

noted that while some operators apply identical set-up charges to local and long-distance calls, the free call times can

vary.

Figure 77

Minimum cost of local and long-distance calls, incumbent operator

6.29

5.37

3.35

3.07

3.09

7.95

7.80

6.35

7.87

1.70

4.78

3.09

1.62

14.81

4.27

5.88

3.08

8.47

3.16

12.18

4.81

7.41

6.88

8.10

6.29

10.83

3.35

5.68

3.07

3.09

9.66 10.50

6.35

7.87

4.02

1.70

4.78

3.09

1.62

14.81

5.18

7.08

12.59

8.47

3.16

10.00

4.81

7.41 8.09

10.80

4.024.52

0

2

4

6

8

10

12

14

16

BE CZ DK DE EE EL ES FR IE IT CY LV LT LU HU MT NL AT PL PT SI SK FI SE UK JP USA


Local calls 2005 Long distance calls 2005

(60)

(45)

(60)

(300)

(60)

(60)

(30)

(60)

(25)

(60)

(60)

(160)

(60)

(300)

(60)

(60)

(60)

(180)

In Slovakia no minimum price or call setup charges are reported by the operator

EN 78 EN

Figure 78

Minimum cost of a call to a mobile phone, incumbent operator13.58

26.91

10.65

17.90

6.35 7.87

4.02

4.78

18.60

34.08

5.18

23.04

28.27

13.31

6.14

10.00

4.81

7.41

8.09

8.10

1.62

3.35

3.07

18.23

1.70

22.07

0

5

10

15

20

25

30

35

40

BE CZ DK DE EE EL ES FR IE IT CY LV LT LU HU MT NL AT PL PT SI SK FI SE UK JP USA


(60)

(30)

(60 m

in.)

(30)

(60)

(60)

(60)

(60)

(12) (2

6)

In Slovakia no minimum price or call setup charges are reported by the operator

Initial charges for international calls will normally follow similar rules as for national calls. Where unit based charging

is used the initial period duration covered by the first unit may change with the destination. In most countries prices are

the same for business and residential customers. Differences may occur in Austria, France, the UK and USA.

Figure 79

Minimum cost of an international call

27.2

15.8

37.6

12.1

0.0 6.6

4.9

10.4

3.1

0.5

13.8

12.0

6.3

31.0

4.0

1.7

4.1

20.6

1.6

10.4

30.0

65.8

12.1

11.4

10.0

4.8 7.4

61.5

25.9

0.4

12.3

3.4

10.4

18.0

13.7

79.0

47.5

0

10

20

30

40

50

60

70

80

BE CZ DK DE EE EL ES FR IE IT CY LV LT LU HU MT NL AT PL PT SI SK FI SE UK USA JP


Near Distant

MT not to scale

Value: 215.55

EN 79 EN

7.2. MONTHLY RENTAL CHARGED BY THE INCUMBENT OPERATORS

The following charts show the incumbent’s monthly line rental charges for residential and business users in September

2005 and August 2004. In order to reflect the real charges actually paid by users, values are expressed in €, including

VAT for residential users and excluding VAT for business users.

In Italy, Sweden, the United Kingdom, USA and Japan the rental charges are different for business and residential

customers. In Austria two different packages have been chosen as appropriate for business (TikTak Office) and

residential users (TikTak Privat), hence different packages. In the United Kingdom the residential package changed in

2004, after BT abandoned the Residential Standard Tariff. The “BT Together Option 1” tariff is used. In Finland and

Japan the monthly rental will depend on where in the country the line is connected. The charges shown are for the

capital/most densely populated area.

Figure 80

Residential monthly rental

16.8

10.2

16.0

15.7

6.3

12.4

15.3

10.0

5.1

6.7

18.4

13.0

6.5

18.2

16.0

11.0

15.1

10.7

7.7

11.8

13.4

17.1

7.7

14.2

17.2

11.2

16.0

14.2

12.9

6.7

18.4

13.8

6.0

18.2

16.0

12.8

15.3

10.7

7.7

11.8 13.4

15.6

7.2

13.8

13.0

24.2

14.6

16.0

6.3

15.3

5.1

14.0

24.2

14.6

0

5

10

15

20

25

30


€, VAT included

Aug 2004 Sep 2005 EU 25 Sep 2005

Figure 81

Business monthly rental

13.9

12.9

12.8

13.5

6.5

10.5

13.2

8.7

8.6

6.9

16.0

14.2

13.2

15.3

18.9

10.3

12.7

8.9

9.1

10.1

12.4

20.3

14.9

19.1

14.2

16.8

13.8

11.9

12.1

6.9

16.0

14.2

13.2

15.3

18.9

10.3

12.7

8.9 9.1 10.1

12.4

20.3

13.8

18.4

13.1

20.0

17.0

12.8

6.5

13.2

8.6

13.1

20.0

15.3

0

5

10

15

20

25


€, VAT excluded

Aug 2004 Sep 2005 EU 25 Sep 2005

EN 80 EN

The following charts show the EU weighted average variation in nominal terms of the residential and business monthly

line rental charge. Averages for EU25 and EU15 are presented.

Figure 82

Residential rental per month

14.514.8

11.6912.24 12.47

13.34

14.0414.28

15.28 15.33

11.6

12.5

13.413.7

9

10

11

12

13

14

15

16

Aug 98 Aug 99 Aug 00 Aug 01 Aug 02 Aug 03 Aug 04 Sep 05

€, VAT included

EU25 Weighted EU15 Weighted

Figure 83

Business rental per month

14.4 14.3

12.1

12.7 12.813.1

14.114.3

15.114.9

11.8

12.3

13.413.6

11.0

11.5

12.0

12.5

13.0

13.5

14.0

14.5

15.0

15.5

Aug 98 Aug 99 Aug 00 Aug 01 Aug 02 Aug 03 Aug 04 Sep 05

€, VAT excluded

EU25 Weighted EU15 Weighted

7.3. AVERAGE MONTHLY EXPENDITURE (COMPOSITE CALL BASKET)

The figures presented in this section are intended to provide an estimate of the average monthly expenditure of a

“standard” European consumer (business and residential). The Basket Methodology for Telecommunications Cost

Comparison has been devised by the OECD and accepted in most countries as the most stable and neutral method of

comparison.

The user is assumed to have a contract for the provision of voice telephony services with the incumbent operator, and to

use only this operator for all types of calls (local, long-distance, international, calls to mobile). Since consumers are

making increasing use of call-by-call carrier selection, in particular for specific highly discounted types of calls (i.e.

international and long-distance), the figures given below are purely indicative, and do not necessarily reflect the

cheapest solution available.

The charts below show the average monthly expenditure for standard residential and business users as of September

2005, expressed in €, based on the standard tariffs charged by the incumbent operators (i.e. excluding any discount

packages). This means that lower costs can be achieved if the user subscribes to one or more discounted packages.

The basket of calls used to estimate average monthly expenditure is the new “composite OECD basket” which includes

not only fixed national calls (as did the old basket), but also fixed international calls and calls to mobile networks. The

revised OECD baskets were adopted in May 2000.

The OECD residential/business baskets are defined as follows (on an annual basis):

The fixed (i.e. non-recurring) charges include the annual line rental charge plus the charge for the installation of a new

line (depreciated over 5 years). Fixed charges for residential users include VAT, while for business users VAT is

excluded.

The usage charge for residential users refers to a basket of 1.200 national calls to fixed lines, plus 120 calls (with an

average duration of 2 minutes) to mobile networks (Representing 10% of the number of calls to fixed lines), plus 72

international calls (Representing 6% of the number of calls to fixed lines). The usage charges for national calls to fixed

lines are calculated with a weighted distribution over 14 distances from 3 to 490 km, at representative times of day (4

calls during the week and 2 during the weekend). The call duration varies from 2.5 to 7 minutes, depending on time and

distance. The usage for residential users is weighted towards off-peak hours, and with typically long calls. Only 36% of

the calls are within normal business hours; 64% are for distances below 10 km; 9% are for distances above 100 km.

The usage charge for business users refers to a basket of 3 600 national calls to fixed lines plus 360 calls (with an

average call duration of 2 minutes) to mobile networks, plus 216 international calls. The usage charges for national calls

to fixed lines are calculated with a weighted distribution over 14 distances from 3 to 490 km, at representative times of

day (4 calls during the week and 2 during the weekend), and with a call duration of 3.5 minutes regardless of time of

day and distance. The usage for business users is weighted towards business hours, and with typically short calls. Over

86% of the calls are within normal business hours; 64% are for distances below 10km; 12.5% are for distances above

100 km.


EN 81 EN

Figure 84

Average monthly expenditure (composite basket)

Residential users

15 7 7 14 15 14 15 19 8 16 8 17 17 13 16 19 18 16 6 15 15 14 16 17 19 25 16 15

8

17 22

17 18 18 18

14

25

17

26

17 18

22

2119 21

22

33

24 25 2625 25

26

19

32 35

24 24

2931

33 33 33 33 34 34 34 34 3536

37 38 39 39 40 40 4142

45 45

48

50

39 39

0

10

20

30

40

50

60

CY EE LT SI SE USA

CA

HU LU SK UK MT AT DE CZ ES NL DK USA

NY

LV EL FR PL IT PT BE IE FI JP

€ per month, VAT included

Fixed Usage

Figure 85

Average monthly expenditure (composite basket)

Business users

12 8 12 17 14 19 14 14 12 14 16 20 19 15 7 14 21 12 18 15 10 20 16 13 9 22 19

4545

4350

5055 55 58 57 55

52 5963

73

67

65

7569 73

82

7278

8192

91 99

4854

5760

6469 69 70 70 71 71 72

78 78 80

87 87 8891 92 94 94

101

113118

48

48

8186

0

25

50

75

100

125

150

USA

CA

CY EE SI LU SE USA

NY

DE DK EL ES NL AT CZ MT LT PT IE PL FR HU SK IT BE FI LV UK JP

€ per month, VAT excluded

Fixed Usage

7.4. PRICE OF FIXED NATIONAL CALLS BY THE INCUMBENT OPERATOR

7.4.1. Prices charged by the incumbent operators for individual fixed national calls

This section shows the prices charged by the incumbent operators for individual fixed calls (the same call prices apply

to business and residential users). Where the incumbent operator uses a unit-based charging system, the price of calls of

different duration and/or distances may in some cases be identical, where both calls are charged the same number of

units. Any call set-up charges, minimum charges and/or call specific duration allowances have been taken into account.

Prices refer to peak hours (weekdays 11.00) and are expressed in € including VAT. Except where otherwise specified,

the figures refer to September 2005.

EN 82 EN

Prices are indicated for three-minute and ten-minute calls over two distances: 3 km (equivalent to a local call) and 200

km (equivalent to a national call). In several countries the tariff changes at exactly one of these distances: in these cases,

the rates for the lower distance band are used.

The price of a three-minute call is more affected by the magnitude of the call set-up charge than the price of a ten-

minute call.

Where different tariff packages exist, the basic, residential package is selected. Otherwise the standard tariff is used.

The “TikTak Privat” Package is used in Austria, “BelBasic” in the Netherlands and “BT Together Option 1” in the UK.

No discount packages are taken into account.

The EU average value is the average of the EU countries weighted according to the national population.

Figure 86

Local call charge, 3 min

8.1

9.1

9.3

9.2

11.9

13.3

15.8

13.4

14.5

14.7

14.8

15.5

15.1

15.8

16.1

17.6

20.8

6.9

7.9

8.9 9.3

9.3

12.2

12.6

12.9

13.3

13.4

13.4 14.5

14.7

14.8

14.8

15.1 15.8

16.1

17.6

20.8

6.9

7.9

8.9

8.0

9.7

12.0

11.9

12.2

12.6

12.9

8.1

9.3

9.3

12.2

9.6

11.7

11.9

0

3

5

8

10

13

15

18

20

23

JP SI USA ES PL LU EL CY EE DE LV IT SE MT NL UK FR DK LT AT IE PT HU FI CZ SK BE


2004 2005 EU25 Average

Figure 87

Local call charge, 10 min

8.1

20.1

24.4

25.1

27.5

28.4

29.4

36.4

30.7

39.2

33.2

35.6

36.9

40.5

38.8

42.0

44.4

46.7

49.0

49.2

53.7

57.2

58.8

22.2 24.8

25.1

26.3

30.9

35.6

36.9

36.9 38.8

39.0

44.5 46.7 49.0

49.2

53.7

57.2 58.8

25.2

25.0

26.3

30.9

8.1

21.7 24.4 27.5

28.4

29.4 30.8

30.9 33.0

33.2

0

10

20

30

40

50

60

USA CY IT FI EE MT SI JP ES SE PL LU EL FR NL LV DK PT LT DE UK HU AT IE CZ BE SK



EN 83 EN

Figure 88

National call charge, 3 min

7.9

8.0

12.2

13.4

17.7

18.4

20.8

21.9

32.6

33.3

32.2

32.4

32.4

42.1

34.0

38.1

37.6

38.1

39.9

9.6

13.3

13.4 14.7

32.1

32.2

32.4

32.4

32.5

35.2 36.2 37.8

38.1 39.9

26.6

24.5

9.7

13.3

36.0

23.2

23.5

7.9 9.3

12.2

17.7

18.4

20.8 22.2

24.5 26.6 28.8

0

5

10

15

20

25

30

35

40

45

SI CY EE SE UK DK DE AT NL BE EL PT IE LT FR ES LV JP USA CZ FI SK PL HU IT



Figure 89

National call charge, 10 min

20.1

25.0

29.4

44.4

49.1

57.2

59.0

64.9

96.2

88.3

90.0

103.4

108.0

140.2

113.3

114.8

126.9

123.3

125.4

26.3

36.9 44.5 49.0

84.5

94.0 103.4

108.0

108.3

113.3

114.8 120.7

123.3

125.9

81.7

79.4

26.3

36.9

119.9

73.2

73.8

21.7

24.8 29.4

49.1

57.2

59.0 65.5

79.4

81.7

83.4

0

25

50

75

100

125

150

CY EE SI SE DK UK DE NL BE AT PT EL LT IE FR ES FI LV USA CZ JP IT SK HU PL



EN 84 EN

Figure 90

Local and national call charge, 3 min

EU 25 weighted average

12.413.0 12.712.913.112.5

25.4

30.033.834.5

37.2

42.0

0

5

10

15

20

25

30

35

40

45

2000 2001 2002 2003 2004 2005


Local call charge, 3 min National call charge, 3 min

Figure 91

Local and national call charge, 10 min

EU 15 weighted average

76.8

35.539.239.1 38.7 38.9 37.8

133.7

117.4108.0 106.0

92.3

0

20

40

60

80

100

120

140

160

2000 2001 2002 2003 2004 2005


Local call charge, 10 min National call charge, 10 min

7.5. TREND OF THE BASKET FOR FIXED NATIONAL CALLS (NATIONAL

BASKET)

Figure 92

EU25 national basket development

28.229.429.329.329.529.2

57.1

63.260.6

62.160.4 60.6

0

10

20

30

40

50

60

70

2000 2001 2002 2003 2004 2005

€ per month

Residential, Incl. VAT Business, Excl. VAT

EN 85 EN

Figure 93

EU25 composite basket development

45.042.8 42.2 41.7 39.9

37.4

94.495.397.3

91.8

103.4

84.1

0

20

40

60

80

100

120

2000 2001 2002 2003 2004 2005

€ per month


Since 2000 all EU25 MS are included except Malta, which is included since 2003.

7.6. PRICE OF FIXED NATIONAL CALLS BY ALTERNATIVE OPERATORS

This section compares the prices charged for public voice telephony services by the incumbent operators in a sample of

EU Member States and by the largest competitor in each Member State. The tariff packages selected will impact on this

comparison, although care has been taken to ensure reasonable comparability.

Figure 94

3 min local calls, incumbent and competitor's price

20.8

16.1

13.4

11.7

9.6

9.3

8.9

13.4

14.8

12.2

9.3

11.9

14.5

9.3

15.1

12.6

12.9

14.7

9.3

14.8

7.9

17.6

15.8

12.2 13.3

20.8

12.7

12.6 13.5

9.0

8.6

13.2 14.4

11.4

6.8

22.0

11.6

8.4

14.4

11.5

14.7

14.1

14.6

15.0

11.9

20.8

17.4

n.a.

n.a.

n.a.

0

5

10

15

20

25


€-cents, Including VAT

Incumbent, 3 min. Competitor, 3 min.

EN 86 EN

Figure 95

10 min local calls, incumbent and competitor's price

53.7

36.9 39.0

24.8

30.9

28.4

33.0

49.2

22.2

21.7

35.6 38.8

30.9

46.7

25.1

33.2

49.0

30.8

36.9

26.3

58.8

24.4

29.4

44.5

57.2

42.4

34.2

45.0

22.9

28.6

25.3

23.5

37.9

17.1

69.5

31.9

28.0

44.2

29.0

49.0

36.1

36.2

22.0

28.3

51.9

57.2

n.a.

n.a.

n.a.

58.2

0

10

20

30

40

50

60

70

80




Figure 96

3 min. national calls, incumbent and competitor's price

20.8

32.5

13.4 14.7

9.6

22.2

32.1

28.8

24.5

39.9

9.3

32.2

26.6

38.1

18.4

17.7

37.8

23.5

7.9

36.2

35.2

12.2 13.3

20.8

19.3

12.6

27.6

9.0

17.9

32.1

14.4

11.4

12.2

6.8

30.7

21.1

15.1

37.6

23.1

20.8

30.6

n.a.

n.a

n.a.

n.a.

n.a.

0

5

10

15

20

25

30

35

40

45

BE CZ DK DE EE EL ES FR IE IT CY LV LT HU NL AT PL PT SI SK FI SE UK



EN 87 EN

Figure 97

10 min. national calls, incumbent and competitor's price

108.3

36.9

49.0

24.8

73.8

84.5

83.4

81.7

114.8

21.7

103.4

79.4

123.3

49.1

59.0

125.9

65.5

26.3

120.7

94.0

29.4

44.5

57.2 64.2

34.2

92.0

22.9

59.5

84.5

23.5

37.9

18.5

17.1

98.4

63.7

74.7

38.9

49.0

114.4

64.2

92.0

28.3

51.957.2

102.1

n.a.

0

20

40

60

80

100

120

140

BE CZ DK DE EE EL ES FR IE IT CY LV LT HU NL AT PL PT SI SK FI SE UK

€, Including VAT


7.7. INCUMBENT OPERATOR PRICE FOR AN AVERAGE FIXED

INTERNATIONAL CALL (INTERNATIONAL CALL BASKET)

The basket of international calls for each country provides an estimate of the average cost of an international call.

For the basket comparison of international PSTN call charges, the OECD traffic weight basket methodology is used.

The basket calculates an average charge for calls to all OECD destination countries.

The residential basket includes VAT. Call charges are weighted between peak and off-peak hours: 25% for peak hours

and 75% for off-peak hours. The business basket excludes VAT. Call charges are weighted 75% for peak hours and

25% for off-peak hours. The average price of an international call is lower for business users than for residential users

because of the heavier weighting given to three-minute peak-hour calls, which are, on average, cheaper than five-minute

off-peak calls, and because VAT is excluded for business users but included for residential users.

International call charges vary widely with the destination, and the basket results are based on a weighted average call

charge. Traffic weighting is used, as defined by the OECD for the destination weighting, as per the revision in 2000.

This method applies a weight to each destination based on the traffic volumes reported on that route (ITU statistics).

All tariffs are standard prices from ex-incumbents operators, and both these operators and new entrants may offer lower

prices.

The EU average value is the average of the EU countries weighted according to the national population.


EN 88 EN

Figure 98

Average price for an international call, residential users

0.3

8

0.4

0

0.4

0

0.5

1

0.5

6

0.5

8

0.9

9

0.7

2

0.7

6

0.7

8

0.7

9

0.7

9

0.5

8

0.8

6

1.0

9

0.9

6

1.1

5

1.3

2

1.4

0

1.1

9

1.2

3

1.2

5

1.7

0

2.1

6

2.5

6

0.28 0.41 0.51

0.58 0.72

0.78

0.79

0.82

0.84

0.86

0.89

0.96

1.15

1.16

1.16

1.19

1.23

1.25

1.75

2.16

2.56

1.1

1

0.8

2

0.6

90.41 0.53

0.61 0.76

0.62

0.68

0.70

0.0

0.5

1.0

1.5

2.0

2.5

3.0

CY USA

LA

USA

NY

SE LU NL AT SI EE DE BE IE ES FR UK CZ DK PT MT FI EL HU IT LT SK PL LV JP

€, VAT included


Figure 99

Average price for an international call, business users

0.2

6

0.3

3

0.4

1

0.4

0

0.3

8

0.8

0

0.4

3

0.4

7

0.8

6

0.5

3

0.5

4

0.5

4

0.5

5

0.6

1

0.6

1

0.8

7

0.8

0

0.8

7

0.8

3

1.0

8

0.9

1

0.9

6

1.3

2

1.7

0

2.3

2

0.20

0.33 0.40

0.40 0.47 0.53

0.54

0.54

0.55

0.61

0.61 0.73

0.73

0.76 0.83

0.86

0.91

0.96

1.32

1.70

0.5

4

0.4

5

0.4

5

0.46

0.44

0.44

0.47

0.43

0.40

0.39

0.0

0.4

0.8

1.2

1.6

2.0

CY SE LU NL CZ SI FR USA,

LA

USA,

NY

EE DE AT IE DK SK ES BE MT HU PT EL IT PL FI LT UK LV JP

€, VAT excluded


Japan not ot scale

Value: 2.32

EN 89 EN

Figure 100

EU25 International basket development

0.90.9

1.11.2

1.2

1.6

0.7

1.1

0.7

0.80.8

0.8

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2000 2001 2002 2003 2004 2005

€ per call


7.8. INCUMBENT OPERATOR PRICE OF CALLS TO EU, JAPAN, USA

The following two charts show the prices of a 10-minute international call (including VAT) during peak hours

(weekday 11.00AM) to four different destinations: Near EU country, Distant EU country, USA and Japan. Figures are

expressed in €, including VAT, and they refer to the European incumbent operators and the EU weighted average. The

table below summarises the definition of near and distant EU destination countries.

From: Near EU Far EU

BE FR EL

CZ DE FI

DK SE EL

DE FR EL

EE FI EL

EL IT DK

ES PT DK

FR BE EL

IE UK EL

IT EL DK

CY EL DK

LV SE EL

LT SE EL

LU DE EL

HU AT FI

MT IT FI

NL DE EL

AT DE EL

PL DE EL

PT ES DK

SK CZ FI

SI AT FI

FI SE EL

SE DK EL

UK FR EL

EN 90 EN

Figure 101

10 min. call to near EU country

0.77

0.99

1.75

2.12

2.24

2.30

2.91

2.52

2.72

1.61

3.76

4.07

3.41

0.58

0.67

0.85 1.23

1.37

1.53

1.54 1.90

1.90

1.98

2.12

2.27

2.30 2.49

2.52 2.72

2.81

3.83 4.07

5.95

3.08

1.23

0.58

0.80

0.92

1.37

1.53

1.54

1.47

1.90

1.77

1.98

1.59

0.77 0.99 1.25

1.80

0.0

1.0

2.0

3.0

4.0

5.0

6.0

SE CY DK NL EE DE SI LU ES IE MT CZ AT FI BE IT FR HU EL UK SK PT PL LT LV

€, including VAT


Figure 102

10 min. call to distant EU country

1.75

3.50

2.12

2.52

5.75

3.79

3.76

3.97

4.06

4.07

4.77

5.95

8.06

0.66

1.37

1.53 2.08

2.22

2.46

2.49 2.92

2.97

3.10

3.11 3.42 3.79

3.83

3.87

4.06

4.07

4.90

6.80

8.18

2.75

3.26

1.00

2.06

1.53

2.20

2.45

2.91

2.71

2.92

2.97

3.10

2.71

1.40

1.97

2.12

2.75

0

1

2

3

4

5

6

7

8

9

CY LU SI ES CZ UK IT FR DE EL BE HU NL SK AT PT EE SE PL IE DK LT FI LV MT

€, including VAT


LT not to scale

Value: 11.96

EN 91 EN

Figure 103

10 min. call to USA

1.06

1.37

1.53

2.38

2.41

2.91

2.97

2.52

2.75

3.76

4.77

5.95

0.66 0.85

1.23

1.40

1.78

1.90

1.90

2.08

2.12

2.27

2.38

2.56

2.93

2.97

3.11 3.36

3.83 4.07

4.90

5.95

2.24

2.12

2.07

3.50

1.90

1.90

1.65

1.23

0.85

0.80

1.75

1.98

4.07

1.98

1.53

1.37

1.06

1.97

0

1

2

3

4

5

6

CY NL SE DE LU SI ES MT AT IE CZ BE UK IT FR DK EE EL SK PT HU PL LT FI LV

€, including VAT


Figure 104


6.23

3.42

3.60

6.58

6.71

7.90

8.58

8.78

9.08

7.55

16.01

22.60

2.93

3.50

3.71

3.87 4.98

5.70

5.72

5.95

6.66

6.71 7.90

8.58

8.78

9.08

12.69

16.01

20.25

22.60

5.95

6.77

5.57

5.20

4.98

5.77

3.71

2.91

1.37

2.40

3.50

7.68

20.121.37

0.82

5.64

3.60

3.42

1.48

5.20

0

5

10

15

20

25

CY LU UK EL SE NL AT SK CZ FR BE ES FI SI LV PL HU DE IE IT DK PT EE MT LT

€, including VAT


EN 92 EN

7.9. ALTERNATIVE OPERATORS’ PRICE FOR FIXED INTERNATIONAL CALLS

The equivalent prices for competitor providers in the EU countries are shown in the charts below. One competitor per

country has been analysed. The prices are shown for a 10 minute call, at peak time weekdays.

Prices include VAT and are applicable for September 2005.

Figure 105

10 min international call to near EU country, incumbent and competitor's price

0.70

0.80 1.23

1.00

1.15

2.33

0.71 1.03

2.09

3.04

1.18

2.73

3.29

1.50

2.90

0.58

0.67

0.77

0.85

0.99

1.23

1.25

1.37

1.53

1.54

1.59

1.80

1.90

1.90

1.98

2.12

2.27

2.30

2.49

2.52

2.72

2.81

3.83

4.07

5.95

1.98

1.48

0.99

1.001.46

0.95

0.55

0.74

0.57

0

1

2

3

4

5

6

7

Tele2

CallSat

Tele2

Tele2

Tele2

Arcor

Voljatel

Tele2

Auna

Esat

Tele2

UTA

Elisa

Telenet

Wind

Cegetel

Invitel

Forthnet

NTL

Nextra

Oni

Netia

Lietuvos

gelezinkeliai

TG

SE CY DK NL EE DE SI LU ES IE MT CZ AT FI BE IT FR HU EL UK SK PT PL LT LV

€, Including VAT

Competitor Incumbent EU25 Avg. Competitor

Figure 106

10 min international call to distant EU country, incumbent and competitor's price

1.09

1.32

3.04

2.33

1.03

3.02

2.91

3.74

3.29

1.20

4.04

1.50

4.18

2.90

0.66 1.37

1.40

1.53 1.97

2.08

2.12

2.22

2.46

2.49

2.71

2.75

2.92

2.97

3.10

3.11

3.42 3.79

3.83

3.87

4.06

4.07

4.90

6.80

8.18

2.54

1.181.82

2.71

2.092.45

0.711.46

0.951.37

0

1

2

3

4

5

6

7

8

9

CallSat

Tele2

Voljatel

Auna

Tele2

NTL

Wind

Cegetel

Arcor

Forthnet

Telenet

Invitel

Tele2

Nextra

UTA

Oni

Tele2

Tele2

Netia

Esat

Tele2

Lietuvos

gelezinkeliai

Elisa

TG

CY LU SI ES CZ UK IT FR DE EL BE HU NL SK AT PT EE SE PL IE DK LT FI LV MT

€, Including VAT


EN 93 EN

Figure 107

10 min international call to USA, incumbent and competitor's price

1.03

0.95

1.09 1.46

1.98

2.36

1.82 2.09

1.18

3.02

1.44

3.29

1.50

3.18

2.90

0.66

0.85 1.06

1.23

1.37

1.40

1.53 1.78

1.90

1.90

1.97

1.98

2.08

2.12

2.27

2.38

2.56 2.93

3.11 3.36

3.83 4.07

4.90

0.74

0.46

1.23

0.99 1.20

1.35 1.56

2.33

0.71

2.97

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

CallSat

Tele2

Tele2

Arcor

Tele2

Voljatel

Auna

UTA

Esat

Tele2

Telenet

NTL

Wind

Cegetel

Tele2

Tele2

Forthnet

Nextra

Oni

Invitel

Netia

Lietuvos

gelezinkeliai

Elisa

TG

CY NL SE DE LU SI ES MT AT IE CZ BE UK IT FR DK EE EL SK PT HU PL LT FI LV

€, Including VAT


Figure 108

10 min international call to Japan, incumbent and competitor's price

7.49

3.36

2.45 4.36

7.80

3.73

3.46

7.98

5.50

7.91 9.01

12.31

10.90

14.77

0.82

1.37

1.48

2.93

3.42

3.50

3.60

3.71

3.87 4.98

5.20

5.64

5.70

5.72

5.95

6.66

6.71 7.90

8.58

8.78

9.08

12.69

16.01

20.25 22.60

1.81

0.95

2.09

2.44

3.31

2.96

5.20

5.68

1.09

2.90

0

5

10

15

20

25

CallSat

Tele2

NTL

Forthnet

Tele2

Tele2

UTA

Nextra

Tele2

Cegetel

Telenet

Auna

Elisa

Voljatel

TG

Netia

Invitel

Arcor

Esat

Wind

Tele2

Oni

Tele2

Lietuvos

gelezinkeliai

CY LU UK EL SE NL AT SK CZ FR BE ES FI SI LV PL HU DE IE IT DK PT EE MT LT

€, Including VAT


EN 94 EN

8. LEASED LINES RETAIL TARIFFS

This section contains an overview of prices charged by incumbent operators to end users in each Member State for

national and international leased line services as at 1 September 2005. Figures do not cover wholesale prices. Price

developments are also analysed over the period August 2000 - September 2005.

The figures and the information are taken from a study carried out by Teligen-HI Europe for the

Commission. Data on standard retail prices charged by incumbent operators have been collected in

each country.

8.1. INCUMBENTS' NATIONAL LEASED LINES

National leased line data is provided for 2004 and 2005. Two distances are covered: 2 km (local circuits), and 200 km.

Tariffs are taken from the incumbent operator in each country. Other operators may offer other prices. In order to

properly reflect the tariff structures used in some countries, the circuits may be considered in one of two different ways,

depending on tariff structure. The one to apply will differ from carrier to carrier. The principles used in this report for

calculating the price of a full circuit are:

1: When tariff specifies local tail prices

separately, in addition to main circuit.

2: When tariff specifies a single price for the

circuit, end to end, including local tails.

Local tail length Main circuit length Local tail length Main circuit length

2 km circuit 1 km 0 0 2 km

200 km circuit 2 km 196 km 0 200 km

Note: The local tail length is per tail, i.e. there will be 2 such tails with each circuit.

Where several tariff options exist depending on type of location, the criteria for choice is as follows:

• 2 km circuits are always within a major city (usually the Capital)

• 200 km circuits are between a major city and a “minor” city

As the definitions vary between countries, the type of tariff option chosen will also vary (see details below). The

countries where the price may vary with location or other non-distance related definitions are: Belgium, France, Austria,

Finland, Sweden and the United Kingdom.

Some operators apply termination charges per local end, without necessarily covering the local tail circuit within that

charge.

4 types of circuits are covered: 64 kb/s, 2 Mb/s, 34 Mb/s and 155 Mbit/s. As not all carriers publish tariffs for all these

bitrates and all years, there may be some gaps in the information, especially for higher bitrates.

Some carriers offer 2 Mb/s circuits as both structured and unstructured. In this analysis only unstructured circuits are

included.

Also, some carriers offer different types of leased lines, often in the form of “basic circuits” and circuits in a managed

network. Only “basic circuits” are included in this analysis, as the managed network services are not comparable

between carriers.

Lately a few carriers have decided not to publish their prices for some or all types of leased lines. This makes it

increasingly difficult to present a full overview of the prices in all 25 EU countries.

For the USA the prices of Verizon intra-LATA circuits for New York State have been used. The bitrates of leased lines

offered in some countries may be different from the ones found in most EU member States. Some operators may offer

56 kb/s instead of 64 kb/s, 1.5 Mb/s instead of 2 Mb/s, 45 or 50 Mb/s instead of 34 Mb/s, and 140 or 150 Mb/s instead

of 155 Mb/s. Prices shown in the tables and graphs in this section of the report have been adjusted according to the

difference in capacity.

All prices are presented in EURO per year, excluding VAT.

National leased lines prices as at 1 September 2005.

EN 95 EN

The validity dates of the tariffs used in this section are:

Valid date Valid date

Belgium 01/06/04 Hungary 01/01/02

Czech Republic 01/05/03 Malta 01/12/04

Denmark 01/04/05 Netherlands 01/11/04

Germany 17/04/02 Austria 01/09/01

Estonia 01/06/04 Poland 01/01/00

Greece 01/01/05 Portugal 01/03/03

Spain 01/08/04 Slovenia 01/12/02

France 01/07/03 Slovakia 01/06/01

Ireland 18/06/03 Finland

Italy 01/11/03 Sweden

Cyprus 01/10/04 United Kingdom 01/01/04

Latvia 01/06/99 Japan 01/01/05

Lithuania 27/06/03 USA, Verizon 21/05/05

Luxembourg 01/02/05 USA, Pacbell 12/03/03

Belgium: Belgacom has divided its network into 4 levels based on “economic concentration”. The tariffs shown are for

circuits within or between level 1 areas, “Very high economic concentration”. Prices for 155 Mb/s shown here are

adjusted from prices for 140 Mb/s circuits. Local circuits within an exchange area are priced as a regular circuit of the

given distance.

Czech Republic: Cesky Telecom defines prices for all bit rates based on the price of a 64 kb/s circuit. Coefficients are

given for each bit rate available (up to 2 Mb/s), and the price is the product of the 64 kb/s price and the coefficient.

Local circuits are defined as a 0 km circuit. 10 distance zones are defined for circuits with more than 0 km between

serving exchanges. There are no incremental charges (i.e. per km).

Denmark: TDC divides the leased lines into two categories: Local circuits based on distance bands and whether the two

ends are connected to the same exchange or neighbouring exchanges. Long distance circuits connected to different

exchanges, divided into 4 distance bands. There are no incremental charges (e.g. per km). Prices for 155 Mb/s shown

here are adjusted from prices for 140 Mb/s circuits.

Germany: Deutsche Telekom offers different types of circuits. In this analysis the “Standard Festverbindungen” is used.

Tariffs are divided into: a) Local 1 (same exchange); b) Local 2, up to or above 15 km; c) Long Distance, < 15km, 15 –

50 km, 50 – 150 km, > 150 km. Local 2 and Long distance use incremental (per km) charges. At 34Mb/s and 155 Mb/s

access circuit charges apply, with a distance (per km) element.

Estonia: Elion divides the leased lines into distance bands of 0 – 6 km, 6 – 10 km, 10 – 20 km, >20 km. Trunk circuits

above 20 km use incremental (per km) charges. Local circuits are priced as a regular circuit of the given length.

Greece: OTE divides the leased lines into: a) Local circuits, b) Trunk circuits (< 35 km, 35 – 70 km, 70 – 150 km, > 150

km). Trunk circuits use incremental (per km) charges. 64 kb/s charges are for Hellascom service from 2003. Prices for

2004 are those OTE should apply according to the EETT decision of December 2003. Prices have since changed again.

Spain: Telefonica strictly divides leased lines according to distance: a) Distance bands: 0 – 4 km, 4 – 20 km, 20 – 70

km, 70 – 300 km, 300 – 500 km, > 500 km. All bands use incremental (per km) charges. Telefonica does not publish

prices for 155 Mb/s circuits. Local circuits within an exchange area are priced as a regular circuit of the given distance.

France: France Telecom offers leased lines in the products Transfix and Transfix 2.0. Transfix is the basic service, and

the one used in this analysis. The tariff is divided into distance bands: 0 – 10 km, 10 – 50 km, 50 – 300 km, > 300 km.

34 and 155 Mb/s divide at 30 km and 100 km instead of 50 km. Prices for 2 Mb/s relate to 2,048 kb/s bit rate. 1,920 and

1,984 have different prices. Prices for 34 and 155 Mb/s circuits relate to circuits with one end in a major city (zone A),

as defined by France Telecom. Local circuits within an exchange area are priced as a circuit of the given distance.

Additional definitions apply for higher speed circuits.

Ireland: EirCom define the tariff for leased lines with a local end charge, and main link charges for circuits 0 – 30 km

and > 30 km. Local circuits may be made up by 2 local ends, and no main link. Circuits equal to or above 1 Mb/s have a

distance incremental charge for local ends over 1.5 km.

Italy: All circuits have an access charge per end, and a main link distance related charge per km. Distance bands are 0 –

60 km, 60 – 300 km, and > 300 km. Circuits from 2 Mb/s and above are available with various levels of reduced

charges depending on contract period and overall spend. The most basic level is used in this analysis. Local circuits

within an exchange area are priced as two access circuits only.

Cyprus: CYTA divides the leased lines into: a) Subscriber segment, for access. b) Network segment, between

exchanges, at distance bands of 0 – 20 km, 20 – 80 km, > 80 km. Local circuits within an exchange area are priced as

two subscriber segments.

EN 96 EN

Latvia: Lattelekom circuits have the same price regardless of distance. Prices are only provided for circuits up to 2

Mb/s.

Lithuania: Lietuvos Telekomas distinguish between circuits inside the local exchange area, and those beyond the local

exchange area.

Luxembourg: P&T Luxembourg divide the leased lines tariff into 4 types of circuits: Same local network, contiguous

local network of same nodal sector, same nodal sector or contiguous local networks of different nodal sectors, and non-

contiguous local networks of different nodal sectors. This definition relates to the network hierarchy, and not to

distance. Distances at 200 km are not possible. Local circuits within an exchange area are priced as a circuit in the same

local network.

Hungary: Matav applies an access circuit charge for each end of the circuit, and a fixed basic charge and a per km

charge for the trunk part. Matav does not publish prices for national circuits, so data have not been updated.

Malta: Maltacom has a flat charge regardless of distance, only dependent of bitrate.

Netherlands: KPN Telecom offer leased lines as Digital Standard and DigiStream services. Digital Standard is the basic

service, and the one used in this analysis. Tariffs are divided into a charge per connecting point and a main link charge.

The main link charge is divided into two zones: Up to 50 km with a fixed basic charge and an incremental per km

charge, and over 50 km with a fixed basic charge. Prices are in effect capped above 50 km. Prices for 34 and 155 Mb/s

circuits are not published. Local circuits within an exchange area are priced as two access connections plus a short main

link of the given distance.

Austria: Telecom Austria divides the “Digitaler Stromweg” circuits into 2 categories: City-tarif when both ends of the

circuit are in category A cities (a defined list of 68 towns and cities), and Normal-tarif when the above does not apply.

This analysis used the City-Tarif. The Normal-tarif would in most cases come out more expensive. For the years up to

2000 a different tariff scheme applied, with a different list of towns, and 3 instead of 2 categories. The tariff is based on

a charge per local end, and a distance related charge per km. The distance bands vary with bit rate. Local circuits within

an exchange area are priced as two access circuits only.

Poland: Polish Telecom has no recurring charges related to the access. A basic charge plus a per km charge is applied

for the full length of the circuit. Distance bands are divided into 0 – 3 km, 3 – 20 km, 20 – 30 km, 30 – 50 km, 50 – 100

km, 100 – 200 km, over 200 km.

Portugal: Portugal Telecom divides the leased line tariff into local access circuit charge, and a main link with a fixed

and an incremental charge per km. Distance bands are 0 – 10 km, 10 – 30 km, 30 – 50 km, 50 – 100 km, over 100 km.

Local circuits connected to the same exchange will not incur main link charges. Local circuits within an exchange area

are priced as two access circuits only.

Slovenia: Telekom Sloveije divides the leased line tariffs into 3 distance bands: 0 – 5 km, 5 – 50 km and over 50 km.

Each of these bands have a basic price and a per km price. Distance is calculated between serving exchanges.

Slovakia: Slovak Telecom defines the leased line tariff in two parts: Local Access and Intercity. The Intercity part is

divided into 3 distance bands: 0 – 50 km, 50 – 100 km and over 100 km. Prices are given for the 64 kb/s bitrate. Other

bitrates between 9.6 kb/s and 2048 kb/s are calculated based on the 64 kb/s price using a multiplication factor. This

factor is different for Local Access and Intercity circuit parts. For example 2048 kb/s has a factor of 4.4 for the Local

Access and 5.6 for the Intercity part

Finland: Sonera stopped publishing full 64 kb/s circuit prices in 1998, and has also stopped publishing 2 Mb/s circuit

prices. Local circuit charges were divided into 3 categories: Urban area, Rural areas I and II. Definitions of these areas

relate to individual locations in the Sonera coverage area. Long distance (main link) charges were also divided into 3

categories: Green, Red and Blue. Green covers the main 5 cities, red a further 28 towns, and Blue the rest of the

countries. Distance bands are 0 – 50 km, 50 – 100 km, and > 100 km. Incremental charges per km applied.

Sweden: Telia no longer publishes prices for national leased line. Prices below relate to the last published price list.

Telia divides their network into 5 categories: Metropolitan green and green for the major cities and towns, red and blue

for short distance network in smaller places, and white for rural areas. Circuits are priced according to the portion of the

circuit falling into any of these categories on its route. Here the green tariff is assumed, for a circuit between reasonably

large towns. The tariff is divided into local circuits and long distance. Long distance circuits will have a separate access

link charge per end, and a main link charge. Local circuits are priced in 2 distance bands: 0 – 0.5 km and 0.5 - 3 km.

Long distance circuits are priced in the bands 0 – 20 km, 20 – 40 km, and > 40 km. The latter has an incremental per km

charge. Circuits at 34 Mb/s and 140/155 Mb/s are no longer offered by Telia. Instead other services are offered, as

complete network solutions.

United Kingdom: BT divides their Kilostream (64 kb/s) and Megastream (2, 34 and 155 Mb/s) tariffs into circuits

wholly within City London Zone (0207-area), and circuits with one or both ends outside London. For local circuits

within CLZ the main link does not apply since both ends are connected to the same exchange (according to the

definition used). The price is calculated as the sum of two local access circuits. Distance bands outside London are < 15

km and > 15 km. Incremental charges per km applies.

EN 97 EN

8.1.1. 64 Kbit/s

Figure 109

Price for 64kb/s, 2 km circuits

2 374 2 771

1 481

1 104

1 898

1 674

2 519

2 766

1 544

2 466

2 451

1 552

1 585

1 440

2 342

1 910

3 360

1 200

709

1 043

1 677

5 304

2 417 2 787

2 463

1 064

2 825

1 000

2 000

3 000

4 000

5 000

6 000

BE CZ DK DE EE EL ES FR IE IT CY LV LT LU HU MT NL AT PL PT SI SK SE UK USA

-NY

USA

-CA

JP

€ per year, VAT excluded

2004 2005 EU24

JP not to scale

Value: 7 770

Figure 110

Price for 64kb/s, 200 km circuits

5 720

8 761

3 323 4 561

6 917

2 699

5 831

6 627

4 456

6 578

3 039

1 552

3 823

7 545

4 800

6 792

7 084

4 535

5 242

13 728

3 225

7 088

13 405

8 318

5 953

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

BE CZ DK DE EE EL ES FR IE IT CY LV LT HU NL AT PL PT SI SK SE UK USA

-NY

USA

-CA

JP


2004 2005 EU22

EN 98 EN

8.1.2. 2 Mbit/s

Figure 111

Price for 2Mb/s, 2 km circuits 6 559

14 685

3 989

4 080

9 977

7 233

8 250

7 500

4 571

7 228

5 300

6 466

3 476 5 520

8 536

12 827

13 320

3 600

8 326

3 223

5 872

23 337

4 287

5 633

6 772

4 343

17 893

5 000

10 000

15 000

20 000

25 000

BE CZ DK DE EE EL ES FR IE IT CY LV LT LU HU MT NL AT PL PT SI SK SE UK USA

-NY

USA

-CA

JP


2004 2005 EU24

JP not to scale

Value: 37 553

Figure 112


24 051

56 068

23 100

45 973

18 644

39 450

39 504

35 345

49 137

15 215

19 115

60 801

16 200 27 120

44 408

28 663

36 083

70 510

43 885

64 333

44 056

83 934

8 694

6 466

9 191

20 000

40 000

60 000

80 000

100 000

120 000

BE CZ DK DE EE EL ES FR IE IT CY LV LT HU NL AT PL PT SI SK SE UK USA

-NY

USA

-CA

JP


2004 2005 EU22

EN 99 EN

8.1.3. 34 Mbit/s

Figure 113


11 697 18 945

47 109

32 382

44 919

47 340

37 076

46 605

28 010

11 730

30 600

18 000

24 174

27 563

48 621

33 480

26 016

30 619

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

BE DK DE EE EL ES FR IE IT CY LT LU HU AT PT SI UK USA

-NY

USA

-CA

JP


2004 2005 EU16

Figure 114


116 981

103 842

108 273

226 196

135 541

272 954

231 720

419 255

262 348

77 607

64 124

194 400

214 974

168 073

305 366

179 040

88 951

380 035

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000

BE DK DE EE EL ES FR IE IT CY LT HU MT NL AT PT SI UK USA

-NY


2004 2005 EU15

EN 100 EN

8.1.4. 155 Mbit/s

Figure 115


14 010

25 260

77 716

108 000

76 200

133 713

50 971

23 460

50 760

36 000

29 040

39 376

145 342

110 392

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

BE DK DE EL FR IE IT CY LT LU HU AT PT SI UK JP


2004 2005 EU14

Figure 116


249 067

337 931

460 800

485 700

734 833

388 800

448 800

240 104

872 200

1 459 725

119 739

198 959

144 360

163 114

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

1 600 000

BE DK DE EL FR IE IT CY LT HU AT PT SI UK JP


2004 2005 EU13

EN 101 EN

8.2. NATIONAL LEASED LINES PRICE TRENDS (1 AUGUST 1998 - 1 SEPTEMBER

2005)

Figure 117

EU average price variation since 1998, 64Kb/s

-21%-22%

-19%

-35%-34%

-13%

-17%

-21%

-16%

-30%

-20%

-22%

-27% -26%

-40%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

1998 1999 2000 2001 2002 2003 2004 2005

% change since 1998

2 km 200 km

Figure 118

EU average price variation since 1998, 2 Mb/s

-25%

-28%

-22%

-46% -45%

-10%

-16%-15%-14%

-40%

-19%

-27%-29%

-33%

-50%

-45%

-40%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

1998 1999 2000 2001 2002 2003 2004 2005

% change since 1998

2 km 200 km

EN 102 EN

Figure 119

EU average price variation since 1998, 34 Mb/s

-29%

-24%

-27%

-51% -52%

-2%

-32%

-17%

-24%

-46%

-15%

-32%

-43%

-46%

-60%

-50%

-40%

-30%

-20%

-10%

0%

1998 1999 2000 2001 2002 2003 2004 2005

% change since 1998

2 km 200 km

8.3. INTERNATIONAL LEASED LINES PRICES

This section examines the standard retail prices (annual rental) for international leased line services (half-circuits in

each country) charged by the incumbent operators in each Member State. An analysis of the price development over the

period from August 1998 to September 2005 is also included.

Three destinations are covered: international half circuits to the nearest EU country (hereafter “near EU”), to the most

distant EU country (“far EU”) and to the USA.

Three types of circuits are considered: digital 64 Kbit/s, 2 Mbit/s and 34 Mbit/s. Given that price information on 155

Mbit/s international lines is only available for a few Member States, the analysis of these circuits is omitted.

The data is presented with the following parameters:

• All charges in Euro per month

• Excluding VAT

• The years from 2000 are covered

• Variable / 1 year contract (shortest term available).

• AT&T prices are used for USA

EN 103 EN

8.3.1. 64 Kbit/s

Figure 120

64 kb/s half-circuit prices to near EU country

9 600

20 374

4 375 8

358

10 560

12 982

6 769

5 142

10 827

7 332

9 484

7 200

4 404

16 169

37 615

9 096

17 347

6 600 10 429

10 920

38 654

34 350

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

BE CZ DK EE EL ES FR IE IT CY LV LT LU HU MT NL PL PT SI SK FI UK USA


2004 2005 EU21

Figure 121

64 kb/s half-circuit prices to distant EU country

22 800 3

3 413

12 998

15 417

12 600

13 777

16 361 26 187

18 968

21 027

28 827

87 778

12 000

25 442

12 000

13 186 21 839

38 654 48 287

8 304

8 415

14 352

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

90 000

100 000



2004 2005 EU21

EN 104 EN

Figure 122

64 kb/s half-circuit prices to USA

14 400

43 599

12 612

27 610

15 240

21 997

12 126

16 361

41 899

24 141

28 395

28 827

83 698

15 816

36 159

11 040

25 069

21 839

58 489

8 781

8 808

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

90 000

BE CZ DK EE EL ES FR IE IT CY LV LT LU HU MT NL PL PT SI SK FI UK


2004 2005 EU21

8.3.2. 2 Mbit/s

Figure 123

2 Mb/s half-circuit prices to near EU country

110 400

152 801

84 480 180 304

132 448

117 492

145 883

151 999

624 285

173 468

84 000

87 358

437 834

392 574

75 207 5

9 976

81 276

30 628

66 724

44 441

29 400

73 324

100 000

200 000

300 000

400 000

500 000

600 000

700 000



2004 2005 EU21

EN 105 EN

Figure 124

2 Mb/s half-circuit prices to distant EU country

211 200

250 594

206 628

163 796

178 047

261 872

170 714

173 777

278 584

1 167 555

254 420

151 200

174 716

437 834 562 951

109 236

100 800

123 478

116 979

121 284

144 240

142 326

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000



2004 2005 EU21

Figure 125

2 Mb/s half-circuit prices to USA

326 995

220 880

252 425

160 620

178 047

418 994

191 407

232 861

278 584

1 123 372

148 032

361 392

139 200

185 109

174 716

651 321

116 976

127 164

126 000

113 504

145 200

200 000

400 000

600 000

800 000

1 000 000

1 200 000

BE CZ DK EE EL ES FR IE IT CY LV LT LU HU MT NL PL PT SI SK FI UK


2004 2005 EU21

EN 106 EN

8.3.3. 34 Mbit/s

Figure 126

34 Mb/s half-circuit prices to near EU country1 154 400

611 205

262 527

533 612

954 084

1 262 125

704 933

1 017 388

285 108

919 488

480 000

300 827

100 000

116 909

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

BE CZ DK EE EL ES IE IT LV LT LU NL PT SI FI


2004 2005 EU15

Figure 127

34 Mb/s half-circuit prices to distant EU country

1 002 377

1 145 448

1 438 823

1 068 297

1 481 304

871 200

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

1 600 000

CZ EL ES IT NL PT FI


2004 2005 EU6

EN 107 EN

Figure 128

34 Mb/s half-circuit prices to USA

1 522 800

1 307 980 1 644 744

2 271 826

1 068 297

2 079 696

801 600

500 000

1 000 000

1 500 000

2 000 000

2 500 000

BE CZ EL ES IT NL PT FI


2004 2005 EU8

EN 108 EN

8.4. INTERNATIONAL LEASED LINES PRICE TRENDS (1 AUGUST 1998 - 1

SEPTEMBER 2005)

Figure 129

Average price variation, 64 Kbit/s

-54% -54% -54%

-43%-44% -44%

-48%-50% -50%

-20%

-26% -26%

-40%

-25%

-14%-14%

-21%

-20%-20%

-33%

-60%

-50%

-40%

-30%

-20%

-10%

0%

1998 1999 2000 2001 2002 2003 2004 2005


to near EU country to distant EU country to USA

Figure 130

Average price variation, 2 Mbit/s

-58% -58%-57%

-52%

-35%-35%

-15%

-52%-52%-50%

-16%-25% -25%

-34%

-50%-50%-47%-37%

-27%-27%

-20%

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

1998 1999 2000 2001 2002 2003 2004 2005


to near EU country to distant EU country to USA

EN 109 EN

EN 110 EN

9. EXCHANGE RATES

9.1. EXCHANGE RATE USED IN SECTION 5 ON THE MOBILE BASKET,

SECTION 8 ON PUBLIC VOICE TELEPHONY TARIFFS AND SECTION 9 ON

LEASED LINE TARIFFS.

EN 111 EN

EURO

Belgium 1

Czech Republic 0.03396

Denmark 0.13405

Germany 1

Estonia 0.06391

Greece 1

Spain 1

France 1

Ireland 1

Italy 1

Cyprus 1.74581

Latvia 1.43699

Lithuania 0.28963

Luxembourg 1

Hungary 0.00406

Malta 2.32883

Netherlands 1

Austria 1

Poland 0.25699

Portugal 1

Slovenia 0.00418

Slovakia 0.02600

Finland 1

Sweden 0.10696

UK 1.48236

Japan 0.00736

USA 0.81786

EN 112 EN

EN 113 EN

9.2. EXCHANGE RATE USED IN ALL THE OTHER SECTIONS

EN 114 EN

Belgium 1

Czech Republic 0.03378721

Denmark 0.13399796

Germany 1

Estonia 0.06391165

Greece 1

Spain 1

France 1

Ireland 1

Italy 1

Cyprus 1.74489618

Latvia 1.4365752

Lithuania 0.28962002

Luxembourg 1

Hungary 0.00398963

Malta 2.3293734

Netherlands 1

Austria 1

Poland 0.25523226

Portugal 1

Slovenia 0.00417502

Slovakia 0.0257387

Finland 1

Sweden 0.10742754

UK 1.47058824

SOURCE: OJ C244/1 OF 4.10.2005

EN 115 EN

EN 116 EN

10. OECD

TELECOMMUNICATIONS

BASKET DEFINITIONS

10.1. NATIONAL PSTN BASKET

Business basket results exclude VAT. Residential

basket results include VAT.

The non-recurring charge is calculated as an

average between the charge for a new line

installation, and the charge for “same day

takeover”, i.e. when there is a direct transfer from

the previous to the new customer. Valid for both

Business and Residential baskets.

Non-recurring charge calculation Weight

New line connection charge 50%

Same day takeover connection charge 50%

The non-recurring charge is depreciated over 5

years. An exception is made for countries where the

connection charge has a lifetime value (e.g. Japan,

where the connection is a tradable asset). Valid for

both Business and Residential baskets.

Non-recurring charge depreciation Weight

With normal one-off charge 5

Where connection is a tradable asset 20

Annual rental for the service is included in the

basket. Any additional recurring charges (per year)

shall also be included (e.g. charges related to the

use of specific calling plans).

Where the service (or tariff plan) includes a number

of “free” calls or minutes, or any other call-related

allowance, the value of this allowance is deducted

from the usage. The value of the deducted

allowance cannot be higher than the usage. Where

the tariff clearly specifies that the allowance is

related to specific types of calls (e.g. local,

international), the usage in question shall only

cover the defined type(s) of calls.

The number of calls to fixed line phones (i.e.

excluding calls to mobile phones) is defined as:

Number of national fixed line calls Calls per year

Business basket 3600

Residential basket 1200

The national usage will have a weighted

distribution over 14 distances. Call charges relevant

at each of these distances shall be used.

Km 3 7 12 17 22 27 40 75 110 135 175 250 350 490

Bus 53 11 7 4 2.5 3 3.5 3.5 2.5 2 1.5 1.5 1 4

Res 60 14 5 3 1.5 2.5 2.5 2.5 1.5 1.25 1 1 0.75 3.5

Bus = Business basket, Res = Residential basket.

All weights in percent of total number of fixed line

calls.

The national usage will have a weighted

distribution over six time and day points. Call

charges relevant at each of these time and day

points shall be used.

Day/Time We 11:00 We 15:00 We 20:00

Bus 45.4 40.6 7

Res 14.3 22.1 31.6


All weights in percent of total number of fixed line

calls.

We = Weekdays, Sa = Saturdays, Su = Sundays.

EN 117 EN

National call duration will vary with distance and

time of day. The charge for each call shall reflect

the actual charge for the duration in question, as

defined by the tariff. Call setup and minimum

charges shall be included.

Day/Time Weekday daytime Weekday evenings, nights and weekends

Distance 3-12 Km 17-40 Km 75-490 km 3-12 km 17-40 Km 75-490 Km

Bus 3.5 3.5 3.5 3.5 3.5 3.5

Res 2.5 3.5 3.5 3.5 6 7


Duration in minutes per call.

Calls to mobile phones may be added to the basket.

This is optional, and the presentation of the results

must clearly state whether such calls are included or

not. The number of calls shall be 10% of the

number of national fixed line calls, in addition to

the fixed line calls.

Calls to mobile phones Calls per year Call duration

Business basket 360 2

Residential basket 120 2

Call duration in minutes per call.

10.2. INTERNATIONAL PSTN

BASKET

The international PSTN basket, when used

separately, shall reflect the cost of a single call,

calculated according to the weighting method

described below. No fixed charges are included.



Call charges for calls to all other OECD Member

States shall be used. Peak and off-peak time call

charges are used, defined as the highest (most

expensive) charge and the lowest (least expensive)

charge.

Call cost is based on average per minute charge.

Call setup charges and/or different charges for first

and additional minutes are included.

The charges to different destinations are weighted

according to the ITU call volume statistics. An

average over the latest 5 years of available traffic

statistics is used. As there may be gaps in the ITU

statistics for certain destinations from some

countries, calls on such routes are excluded from

the calculation.

Call charges are weighted between peak and off-

peak:

Peak time weight Off-peak time weight

Business basket 75.0 % 25.0 %

Residential Basket 25.0 % 75.0 %

Call duration differ between peak and off-peak

time:

Peak time Off-peak time

Business basket 3 minutes 5 minutes

Residential Basket 3 minutes 5 minutes

10.3. COMPOSITE NATIONAL –

INTERNATIONAL BASKET

This basket is based on a combination of the

national and international baskets, as described

above. The national basket remains unchanged, and

the international basket is scaled using a fixed

number of international calls.



The international portion of the basket shall have a

number of calls equal to 6% of the national fixed

line calls, in addition to the calls defined in the

national portion of the basket.

International calls per year

Business basket 216

Residential basket 72

EN 118 EN

10.4. NEW OECD MOBILE

BASKETS

All baskets will include:

Registration or installation charges with 1/3 of the

charges, i.e. distributed over 3 years.

Monthly rental charges, and any option charges that

may apply to the package, or package combination.

The three new baskets are:

Low user basket. The usage level of this basket is

low, with a call volume less than half of that in the

Medium user basket.

Medium user basket. This basket will have 75

outgoing calls per month.

High user basket. The usage level is about twice the

Medium user basket.

The usage profiles will also include a number of

SMS messages per month.

Call and message volumes for each basket are:

Outgoing calls /month SMS per month

Low user 25 30 Medium user 75 35 High user 150 42

The information received showed that there is little

difference between the average pre-paid usage and

the low user post-paid usage. The low user basket

can therefore be used for both pre- and post-paid

tariffs, allowing a simple comparison also between

the two types.

Only national calls are included in the profiles, with

4 different destinations:

Local area fixed line calls. This is used to

accommodate the tariffs that have separate charges

for the local area. When such charges are not

available, this proportion of calls is included in the

National.

National fixed line calls. This covers all fixed line

calls outside the local area, except in cases as noted

above.

Same network mobile calls (On-net). This includes

all calls made to mobiles in the same mobile

network as the caller.

Other network mobile calls (Off-net). This includes

calls to all other mobile networks in the caller’s

country. When the charges are different depending

on destination network, the market shares based on

subscriber numbers are used for weighting the

charges. Up to 3 other networks will be considered

in each country.

Distributions per destination for each basket are:

% of total number of calls

Fixed Local area Fixed National area On-net mobile Off-net mobile

Low user 28.0% 14.0% 40.0% 18.0% Medium user 24.0% 12.0% 43.0% 21.0% High user 26.0% 14.0% 42.0% 18.0%

As the information received produced little

evidence on the split between local and national

fixed line calls, the assumption has been used that

the ratio would be 2:1 for local:national, i.e. 67%

local and 33% national. This assumption is taken

from the averages in fixed baskets, and the scarce

information received.

Instead of splitting time and day into distinct times

and days the following approach will be used:

Peak time calls at weekdays, most expensive time

during daytime.

Off-peak time calls at weekdays, cheapest time

before midnight.

EN 119 EN

Weekend time calls, at daytime Sundays.

Distributions over time and day for each basket are:

% of total number of ToD Peak

ToD Off-peak

ToD Weekend

Low user 38.0% 35.0% 27.0% Medium user 47.0% 30.0% 23.0% High user 63.0% 22.0% 15.0%

There will be 3 separate call durations:

Local and national fixed line calls

Same network mobile calls (On-net)

Other network mobile calls (Off-net)

Call durations for each basket are:

Minutes per call Dur Fixed National

Dur Mobile On-net

Dur Mobile Off-net

Low user 1.6 1.4 1.4 Medium user 2.1 1.9 1.9 High user 2.2 2.0 2.1

Any call allowance value included in the monthly

rental will be deducted from the usage value once

the basket is calculated. The deduction cannot be

larger than the actual usage value, i.e. negative

usage is not allowed. No transfer of unused value to

next month is taken into account.

Any inclusive minutes will be deducted from the

basket usage before starting the calculation of usage

cost. The inclusive minutes are assumed to be used

up with the same calling pattern that is described in

the basket, i.e. the same peak/off-peak ratio and the

same distribution across destinations. Where the

inclusive minutes are clearly limited to specific

destinations or times of day this will be taken into

account. No transfer of unused minutes is taken into

account.

Any inclusive SMS-messages will be deducted

from the basket before starting the calculation of

the SMS message cost, up to the number of

messages in the basket.

For each of the operators covered a set of packages

shall be included so that the cheapest package

offered by that operator can be calculated for each

of the 3 baskets.

Multiple operators in each country shall be

included, with at least the two operators with

highest number of subscribers in each country. The

operators included shall have a total market share of

at least 50% based on subscriber numbers.

Basket results are calculated for a period of one

year.

EN 120 EN

Austria, 11, 12, 15, 16, 17, 18, 19, 20, 22,

23, 24, 25, 26, 39, 40, 42, 56, 57, 65, 70,

72, 76, 78, 79, 82, 94, 95, 96, 111, 114

Belgium, 12, 15, 16, 17, 18, 19, 21, 23, 24,

25, 26, 56, 57, 70, 72, 76, 94, 95, 111,

114

Cyprus, 3, 10, 16, 17, 18, 19, 21, 23, 24,

35, 38, 39, 40, 42, 56, 72, 76, 95, 111,

114

Czech Republic, 12, 15, 16, 17, 18, 19, 20,

21, 23, 24, 25, 33, 34, 37, 38, 39, 41, 42,

49, 56, 57, 65, 76, 95, 111, 114

Denmark, 9, 10, 11, 12, 15, 16, 17, 18, 20,

21, 23, 24, 25, 26, 32, 38, 39, 40, 41, 42,

49, 56, 57, 67, 70, 72, 76, 95, 111, 114

Estonia, 12, 15, 16, 17, 18, 19, 20, 21, 23,

25, 26, 32, 37, 38, 39, 41, 47, 49, 65, 70,

72, 76, 95, 111, 114

Finland, 9, 10, 11, 12, 15, 16, 17, 18, 19,

20, 28, 29, 30, 31, 32, 34, 35, 37, 38, 40,

41, 45, 47, 48, 49, 56, 57, 70, 72, 76, 79,

94, 95, 96, 111, 114

France, 9, 10, 15, 17, 18, 21, 22, 24, 33,

34, 35, 37, 41, 42, 45, 49, 56, 57, 72, 76,

78, 94, 95, 111, 114

Germany, 22, 23, 29, 30, 31, 32, 33, 34,

35, 37, 56, 70, 72, 76, 95, 111, 114

Greece, 15, 16, 17, 18, 19, 23, 24, 28, 29,

30, 31, 37, 38, 39, 40, 41, 42, 49, 56, 67,

70, 72, 76, 95, 111, 114

Hungary, 11, 12, 21, 23, 29, 30, 31, 38, 39,

40, 41, 42, 49, 56, 57, 65, 70, 72, 76, 95,

96, 111, 114

Ireland, 11, 12, 21, 22, 23, 25, 26, 32, 34,

35, 38, 39, 41, 49, 50, 56, 57, 70, 72, 76,

95, 111, 114

Italy, 21, 22, 25, 26, 35, 49, 56, 70, 72, 76,

79, 95, 111, 114

Latvia, 21, 23, 24, 25, 28, 29, 38, 39, 40,

41, 42, 48, 49, 50, 56, 57, 70, 72, 76, 95,

96, 111, 114

Lithuania, 15, 16, 17, 18, 19, 20, 23, 32,

37, 38, 40, 41, 47, 48, 49, 50, 56, 65, 76,

95, 96, 111, 114

Luxembourg, 12, 15, 16, 17, 18, 19, 20,

21, 23, 25, 38, 40, 41, 45, 46, 49, 65, 70,

72, 76, 95, 96, 111, 114

Malta, 15, 16, 17, 18, 21, 23, 24, 25, 26,

28, 30, 31, 38, 39, 40, 41, 42, 49, 56, 57,

76, 85, 95, 96, 111, 114

Netherlands, 10, 12, 15, 16, 17, 18, 19, 20,

21, 22, 23, 24, 25, 26, 29, 30, 31, 32, 38,

40, 41, 42, 47, 56, 57, 70, 72, 76, 82, 95,

96, 111, 114

Poland, 21, 23, 24, 25, 37, 39, 40, 42, 49,

56, 57, 65, 76, 95, 96, 111, 114

Portugal, 12, 15, 17, 18, 19, 21, 22, 35, 49,

56, 70, 72, 76, 95, 96, 111, 114

Slovakia, 3, 12, 23, 24, 25, 26, 28, 29, 30,

31, 32, 38, 39, 40, 41, 42, 49, 56, 57, 65,

70, 72, 76, 77, 78, 95, 96, 111, 114

Slovenia, 15, 16, 17, 18, 19, 21, 25, 26, 35,

38, 39, 40, 41, 42, 49, 56, 57, 65, 72, 76,

95, 96, 111, 114

Spain, 11, 21, 23, 24, 25, 26, 29, 30, 31,

32, 37, 56, 57, 70, 72, 76, 95, 111, 114

Sweden, 11, 12, 15, 16, 17, 18, 19, 20, 23,

24, 26, 28, 35, 45, 46, 48, 49, 56, 76, 79,

94, 95, 96, 111, 114

United Kingdom, 9, 10, 12, 13, 15, 16, 17,

18, 19, 20, 21, 22, 23, 26, 28, 32, 38, 40,

41, 49, 50, 56, 57, 76, 79, 94, 95, 96

EN 121 EN

EN 122 EN

Data on national population used in this report

2004 2005

BE 10396400 10445900

CZ 10211500 10220600

DK 5397600 5411400

DE 82531700 82500800

EE 1351100 1347000

EL 11040700 11073000

ES 42345300 43038000

FR 60200000 60561200

IE 4027700 4109200

IT 57888200 58462400

CY 730400 749200

LV 2319200 2306400

LT 3445900 3425300

LU 451600 455000

HU 10116700 10097500

MT 399900 402700

NL 16258000 16305500

AT 8140100 8206500

PL 38190600 38173800

PT 10474700 10529300

SI 1996400 1997600

SK 5380100 5384800

FI 5219700 5236600

SE 8975700 9011400

UK 59699700 60034500

EU 15 383047100 385380700

EU 10 74141800 74104900

EU 25 457188900 459485600

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