Public contest for the new fixed telephony operator to be announced soon?

The President of the Management Board of RATEL, Jovan Radunovic stated that it was possible that there would be a public contest for the new fixed telephony operator.

Republic’s Agency for Telecommunications (RATEL) has introduced a series of clauses in their Regulation Act, with a purpose to open up the market of telecommuncation services, which opens up possibilities for public announcement of a contest for the new fixed telephony operator.

According to Radunovic’s words, it is possible to provide the competition by introducing new operators, and new technologies, and where this is not possible, it is necessary to recognize, on determined market, an operator with significant participation and to influence formation of the services’ prices.

It is necessary that the prices in this closed market would be regulated, and that they would be formed by applying expenses model according the experience of other developed countries.

The price of services in the fixed telephony of Serbia are lower than in the other countries in our surrounding, and the profit od those kind of services has been reduced from 426 millions to 414 millions EUR, while according RATEL data, investments had significant growth from 62 to 166 millions EUR.

Most part of the profit in fixed telephony, is made through made traffic – 73%, 10% in the pre-paids, and therefore this sector would be having new expenses system and rebalance of tariffs, which would help stabilization of the prices and profits.