The price both in Eesti Telefon and all other fixed networks is 34 sents ($0.02) per minute in standard- rate time, 28 sents per minute in reduced-rate time and 14 sents per minute at night.
This will raise the annual revenues of Eesti Telefon by over 20 million kroons because local calls make up to 85 percent of all calls, according to the Communications Board.
Eesti Telefon lowered its interconnection prices between networks, unifying the method of calculation for end clients at the Communications Boards' recommendation, the company reported.
The board ordered Eesti Telefon that starting April 1 it must charge the same price of 34 sents a minute to its clients calling into Uninet and Tele2 networks as to clients calling within its own network.
Originally, Eesti Telefon wanted to set a higher price per minute for calls made into the networks of its rival companies Tele2 and Uninet than for calls within its own network.
Eesti Telefon also announced that discounts for Internet users will apply to the dial-up numbers of all service providers.
The Communications Board also found that leveling the prices for local and domestic long-distance calls by Eesti Telefon at 34 sents is in accordance with the law.
By decree, the Communications Board compels Eesti Telefon to also provide an Internet dial-up service at the same price, irrespective of the provider of the Internet service.
Nevertheless, the new prices involve a rise of 20 percent to 25 percent, the Communications Board found. General Director of the Communications Board Juri Joema said that respective studies confirm the price hike, and that Eesti Telefon has accepted it.
Joema said that fixing the single domestic call price at 34 sents a minute will swell Eesti Telefon's profits. The company itself has forecast its additional income to reach up to 20 million kroons, but a study by the Communications Board puts the growth figure at up to 31 million kroons.
Joema said that it is reasonable to fix a single price for all domestic calls instead of different prices for local calls and domestic long-distance calls. The board sees no contradictions concerning the cost components calculated into the local-call price.
Estonian Telephone's PR service reported the changes in price policy sets the Estonian telecommunications market in agreement with European trends.
"Due to the new prices we will have to retune the billing system and inform our clients. Those expenses are definitely insignificant for Eesti Telefon," said Ain Parmas, the head of the company's media relations department.
Parmas added that previously planned investments into the network will continue. Last year Eesti Telefon spent 863 million kroons in improving its services, and this year the sum will be about the same.
"Without a doubt, the new unified prices will cheer up the competition in the telecommunications sector and favor further opening of the market," said Ahto Orav, a board member of Eesti Telefon.
Aeroc Ltd., a building materials producer based in Tallinn, will probably benefit from the new prices, according to its marketing manager Andres Kalvik.
"One of our production facilities will move outside Tallinn this summer, so phone conversations with that factory will be cheaper for us," said Kalvik.
On average, the phone bill for communications between the main office of Aeroc in Tallinn and the new factory will be cheaper by a third as the price for long-distance calls decreases from 68 sents to 34 sents, predicted Kalvik.
However, he stressed that most of the companies in Tallinn and other cities in Estonia will face bigger phone bills just as the majority of private clients of Eesti Telefon will, because most of the calls are local.
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