Domestic fixed-line operators increasingly ask for the fixed-to-mobile interconnection tariff to be reduced from the present 3.66 CZK per minute. The tariff was set by the sector regulator in 2001 using the fully allocated cost method; alternatively, using the average long-run incremental cost method, as demanded by the fixed-line operators, would indeed lead to a reduction of the tariff. The reduction would lead to a re-distribution of profits from mobile to fixed-line operators; the net impact on Cesky Telecom would be positive, while it would be negative for T-Mobile CR (39% owned by Ceske radiokomunikace).
Jiri Soustruznik