OPTA has set reasonable KPN procurement tariffs

OPTA’s decision provides for a drop of more than 10% in the procurement tariffs paid for calls which originate from KPN’s network (originating calls). The charges which other market parties have to pay to direct calls to KPN’s network (terminating calls) are to fall by more than 5%.

Setting the tariffs which its competitors have to pay KPN is one of OPTA’s legal duties. The key aspect of this is that these tariffs need to be cost-oriented. In this respect, OPTA bases its actions on principles announced by the European Commission, which are also applied by its fellow regulatory authorities elsewhere in Europe. A comparison of European tariffs has revealed that KPN’s tariffs are average: similar charges are higher in various countries.

When assessing whether tariffs are cost-oriented, OPTA has employed a meticulous process involving all market parties, including KPN, and independent, international experts whom it has enlisted. In this process OPTA has weighed up the various interests in order to make decisions in its capacity as a regulatory authority. The tariff model which it uses, enables KPN to generate enough to cover its costs and to achieve a reasonable return.

OPTA considers the quality of telecommunications in the Netherlands to be vitally important. However, in view of the reasonable tariffs which OPTA has set, and the geographical features of the Netherlands (such as its high population density), the question may be raised as to why this decision on tariffs would affect the quality of KPN’s fixed network.