Setting the “Eurorate” for voice termination services on fixed networks in EU/EEA Member States

Project executed on behalf of the European Commission

Project Objective

The project objective was to set the Eurorate applicable to fixed voice termination services in the EU/EEA Member States, on behalf of the European Commission (EC).

Project Description

With the entry into force of the new EECC (European Electronic Communications Code), the EC had the obligation to set a uniform fixed termination rate (Single Eurorate) for all the EEA (European Economic Area) Member States. The Single Eurorate should be applicable from 2021 onwards.

For this purpose, the EC commissioned Axon to develop fixed costing bottom-up models (BULRIC) for all of the 31 EEA Member States. The project included the following specific activities:

  • Definition of a methodology for the development of the bottom-up LRIC models for fixed networks, in accordance with EU regulations.
  • Data collection process for the gathering of the relevant models’ inputs in each country. +100 fixed operators were involved in this process.
  • Development of 31 bottom-up LRIC models for fixed networks, allowing the calculation and prediction of costs for voice termination services in each EEA country.
Figure 1: Countries of the EEA Area considered in the study
  • The project also included two phases of public consultation as well as several rounds of workshops with the industry, whose outcomes were taken into consideration for the refinement of the methodology and the models (+1000 comments were received from European stakeholders).
Figure 2: Workshop held between Axon/EC and European stakeholders
  • In its final stage, the project also comprised support to the European Parliament and the European Council during the legislative process for the adoption of new wholesale rates across EEA Member States, which strongly relied on the results of the bottom-up models developed earlier.

Key Takeaways

The outcomes of the project were relied on to define the regulatory framework for interconnection rates applicable in all EEA Member States from 2021 onwards. The publicly available files and documents prepared by Axon can be found here.