Free negotiation of network tariffs starts in 2004

The definitive text of Anatel?s PCS rules determines that the maximum TU-M tariff for cellular service providers will remain unchanged until June 30, 2004, and that the rules currently practiced by these operators will continue to apply when they migrate to PCS. Tariffs can be freely negotiated thereafter. PCS operators will follow the same timetable as migrants. Anatel will continue to ratify any tariff increases until June 2004. Telcos have to submit proposed price hikes in advance and Anatel will have 15 days to approve them. The new rules eliminate the formula whereby the VC-1 rate had to be greater than or equal to the sum of the rate for use of the local network (TU-RL) and the PCS user rate (VU-M). This formula applied only to basic plans, which will instead be subject to specific regulation. Anatel is working on the rules for basic plans now. Anatel director Luiz Tito Cerasoli said the formula has been eliminated because prepaid users are a majority and not in basic plans. Hence the decision to exclude the definition of a basic plan as the one with the most subscribers.


This system is retained for PCS, with payment of interconnect rates until June 30, 2005, whenever traffic received or originated by one of the parties exceeds 55%. From then on full bill-and-keep will be implemented, eliminating all interconnect payments. The aim of this approach is protect new entrants, says Anatel says.

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