TALLINN - The Estonian Communications Board has issued an order to the fixed-line telephone and Internet service provider Elion to lower its intercommunication fees.
Under the order, Elion must apply fees calculated by the board on the basis of a respective government decree by Aug. 1.
"Compared with Elion's current fees, the new rate of generating and ending the signal at local and single transit levels is 20 percent lower in standard time," the board concluded.
Elion's media relations officer, Ain Parmas, described the order as bulky and containing complicated language. Before making a decision, Elion's specialists would first have to analyze the order.
Since the interconnection price model was worked out in cooperation with Elion, the board hoped the service provider would not protest the order, said Peeter Maripuu, head of the communications board's calculation and tariffs division.
If Elion did implement the order and lower its interconnection fees, it would mean lower cost-price for competitors now using the Elion network to provide services.
"We are harboring hopes that they will pass some of their gains on to the customers," Maripuu said in reference to the order to lower fees.
However, he added that the retail price was not the communication board's business, and that it could only create preconditions on lowering the price.
Introduction of the lower interconnection fees would also mean a reduction of interconnection revenue for Elion. Although Maripuu made no exact calculations on the fall of revenue, he said that it would most likely not be above 10 million kroons (640,000 euros) per year.
Elion, which is wholly owned by the Eesti Telekom group, estimated its share of the market in total call minutes at 87 percent at the end of March.
