ANATOLY GOLOMOLZIN: FAS MANAGED TO ABOLISH INTRA-NETWROK ROAMING
Operators zeroed the rates of all incoming calls in travel around Russia just when their case was finalized
“We considered the latest measures of the “Big Three” operators together with the actions undertaken by them in H1 2018 and concluded that the operators made the decisive step to abolish the intra-network roaming”, stated Deputy Head of FAS Anatoly Golomolzin on August, 8 upon finalizing the cases against “MTS”, “MegaFon” and “VympelCom”.
Earlier the competition authority opened cases upon signs of violating the Federal Law “On Protection of Competition”. In FAS opinion, the costs of inbound and outbound long-distance calls in travels across Russia are unreasonably overrated, and a daily fee when subscribers are outside the “home” region is unjustified.
FAS sent warnings repeatedly to the operators to eliminate economically and technologically unjustified rates difference when subscribers travel outside their “home” region. The competition authority requested that companies must exclude the unreasonable differences for the same communications services in each tariff plan that subscribers get at home and in travels. Eliminating the difference should not deteriorate the subscriber position.
“Executing the warning, and after the case was opened (January - April 2018) the operators reduced the costs of outbound calls in travel, equaling them to the conditions of the home tariff plan (5 times reduction on voice connections and 3 times for sms), many tariff plans were added use of voice, sms and data transfer from packages while travelling and the payment for inbound calls from region of stay was zeroed. At the same time, the operators introduced payments for inbound calls – 5.0 and 5.5 RUB/min when calls are from the home region the (most frequent) and other regions, and included this fee in those tariff plans where earlier there were no payments for inbound calls”, explained Anatoly Golomolzin.
Since the warnings were not executed in full, in March 2018 FAS opened antimonopoly cases against “MTS”, “MegaFon” and “VympelCom”.
On 8 August, FAS Commission found that “MTS”, “MegaFon” and “VympelCom” violated the Federal Law “On Protection of Competition” (Clause 6 Part 1 Article 10).
As the operators eliminated the violations voluntarily during the cases investigations, FAS did not issue mandatory injunctions. The Commission took into account that from the 20th of August “VympelCom”, from the 1st of September “MegaFon” and from the 31st of August “MTS” abolish the payment for any inbound calls in travels across Russia for 90% of subscribers and from the 30th of September – for the remaining 10%. The tariffs plans where full spending of package services was not provided for, will be amended accordingly.
Paid options introduced by the operators to zero incoming calls in travels will be closed for connections or switched off, and reviewed if offered in a package.
Such violations are subject to administrative liability under the Code on Administrative Violations. The amount of fines will be announced later after considering the administrative cases.
Reference:
FAS issued warnings to four operators to abolish the intra-network roaming in July 2017. By August 2017, they were supposed to amend all valid tariff plans, excluding economically, technologically and otherwise unjustified price difference when subscribers are in the host regions. The deadlines for executing the warning were extended for all companies to December 31, 2017 and to January 31, 2017.
For “TELE2” the deadline was extended to May 31, 2018 and August 31, 2018 (due to suspended billing works caused by 2018 World Cup). On 31.01.2017 the actions of the three companies “MTS”, “MegaFon” and “VympelCom” PJSC were classified as failure to execute (incomplete execution) of the warning.
In March 2018, antimonopoly cases were opened against “MTS”, “MegaFon” and “VympelCom” PJSC.
At the time of opening the cases, the operators introduced a number of changed designed to decrease subscriber payments in travel:
1) “VympelCom” PJSC
- The costs of inbound voice calls in travels across Russia reduced from 9.95 to 5.00 RUB/min (calls from other regions) and to 0 – for calls from the regions of their stay.
- The costs of outbound voice calls in travels across Russia reduced from 9.95 RUB/min to the level of prices for outbound voice calls according to the tariff plan (i.e. prices in the home region).
- Spending of voice traffic from the package – in accord with the home tariff plan, except inbound calls.
- On junior tariff plans, where inbound calls were not billed separately earlier – the 5 RUB/min payment for inbound calls is introduced.
- The costs of sms-messages in travels across Russia reduced from 4.95 RUB/message to the level in accord with the tariff plan.
- The costs of data transfer in travels across Russia = the costs of data transfer on the basic tariffs in the home region.
In the “senior” and “junior” package tariff plans the data transfer traffic is used from the package.
2) “MegaFon” PJSC
- The costs of inbound voice calls in travels across Russia reduced from 9.99 RUB/min to 0 RUB/min for calls from the region of stay, to 5 RUB/min for calls from the home regions and other regions of Russia.
- The costs of outbound voice calls in travels across Russia reduced from 9.99 RUB/min RUB/min to the level of prices for outbound voice calls according to the tariff plan (i.e. prices in the home region).
- Spending of voice traffic from the package – in accord with the home tariff plan, except inbound calls.
- On some package tariff plans where incoming calls were not billed separately earlier, the payment for inbound calls is introduced - 5 RUB/min.
- The costs of data transfer in travels across Russia = the costs of data transfer on the basic tariffs in the home region.
- Data transfer traffic on the “package” tariff plans is used only for senior tariff plans.
3) “”MTS” PJSC
- The costs of inbound voice calls in travels across Russia reduced from 10.90 RUB/min to 0 min for calls from the region of stay, to 5.50 RUB/min for calls from the home regions and other regions of Russia.
- The costs of outbound voice calls in travels across Russia reduced from 10.90 RUB/min to the level of prices for outbound voice calls according to the tariff plan (i.e. prices in the home region).
- On some package tariff plans where incoming calls were not billed separately earlier, the payment for inbound calls is introduced – 5.50 RUB/min.
- Spending of voice traffic from the package – in accord with the home tariff plan, except inbound calls.
- The costs of data transfer in travels across Russia = the costs of data transfer on the basic tariffs in the home region.
- In the “senior” and “junior” package tariff plans the data transfer traffic is used from the package.
4) “T2 Mobile” Ltd.:
- The costs of inbound voice calls in travels across Russia reduced from 5.00 RUB/min to 0 RUB/min for the calls from the region of stay when staying up to 30 days, staying more than 30 days – according to the tariff plan in the region of stay.
- The costs of outbound voice calls in travels across Russia reduced from 5.00 RUB/min to the level of local calls in accord with the tariff plan.
Traffic on “package” tariff plans is used for senior and junior tariff plans.
- The costs of sms-messages reduced from 3,50 RUB/message to 1.50 RUB/message (according to the tariff plan) when staying up to 30 days, staying more than 30 days – according to the tariff plan in the region of stay.
Sms on “package” tariff plans are used for senior and junior tariff plans.
- The costs of data transfer in travels across Russia = the costs of data transfer on the basic tariffs in the home.
Traffic on “package” tariff plans is used on senior and junior tariff plans.
2018-2020 Road Map for developing competition in the communications sector, drafted in line with the National Competition Development Plan (approved by No. 618 Order of the President of Russia on 21.12.2017) has measures on optimizing construction telecommunications networks and the traffic transmission procedure. The deadline is December 2018. It will help reduce operator expenses, optimize the costs and develop competition.