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Bulgaria Commission Slaps Termination Fine on Mobile Operators

Date: 24.01.2010

Bulgaria’s Communications Regulation Commission has fined the mobile operators Cosmo Bulgaria Mobile (Globul) and Mobiltel (M-tel) for not introducing the envisaged reductions in call rates as of January 1.

The Commission ordered fines of BGN 5000 per week until the companies reduce their rates.

In March 2009 the CRC set call price limits on the three Bulgarian mobile operator Vivacom, Globul and M-tel in terms of a commitment to gradually reduce the termination rates* of calls to a schedule set by CRC.

At the end of 2009 PM Boyko Borisov met with the three mobile networks and the CRC, to discuss problems in the telecommunications industry and specifically the reduction of termination rates.

*Termination rates are the charges which one telecommunications operator charges to another for terminating calls on its network. Termination may take place on a fixed or mobile network. For example, a customer of M-Tel wishes to call a friend who has a Globul mobile. M-Tel will charge the customer a fee per minute (the retail charge) for this call. Globul will charge M-Tel a fee for terminating the call on its network. This termination rate therefore forms part of M-Tel's cost of providing the call to its customer.

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