Nkom said it is lowering the price ceiling for calls terminating on the public fixed network to NOK 0.005 per minute from 01 July 2019 from NOK 0.006 currently. This will apply to Altibox, Broadnet, eRate, ICE, NextGenTel, Orange, Puzzel, Telenor Norway, Telia Norway and Verizon, which the regulator has designated as operators with Significant Market Power (SMP) on market 1.
The watchdog is reducing the cap following a revised market analysis and updated LRIC model for working out termination costs. Price regulation is directed towards EEA harmonisation.
From 01 January 2021, the maximum price will come down to NOK 0.004 per minute.
Broadnet is now designated an SMP operator because of the Kvantel acquisition in 2018, and Puzzel used to be called Intelecom Group. These alongside Altibox, NextGenTel, Orange, Telenor, Telia and Verizon have been regulated under the SMP rules since 2016. Nkom said eRate and ICE are subject to the market 1 price cap for the first time.
Nkom is putting the proposal out to consultation with a deadline for comments of 28 November. It will then send a revised draft to the EFTA Surveillance Agency (ESA) for assessment. Assuming ESA approves it, then Nkom will enforce the price cap in the first quarter of 2019.