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Telecommunications Lawful Tariffs Directive No. 797/2021

Ethiopian Communication Authority797/2021

Summary

This directive establishes a framework for assessing the lawfulness of tariffs, intervening to set tariffs, and reviewing tariffs of Telecommunications Operators in Ethiopia. It also clarifies the procedures for operators to notify the Authority about changes or introductions of new tariffs, aiming to prevent unlawful charges.

Who's affected

Telecommunications Operators in Ethiopia, particularly those with Significant Market Power.

Action required

Telecommunications Operators must notify the Ethiopian Communications Authority and seek approval before introducing or changing Controlled Tariffs. They must also publish approved tariffs on their website within seven days of approval.

Key points

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  • Establishes a framework for lawful tariffs for Telecommunications, Collocation, and Infrastructure Sharing services.
  • Defines 'Controlled Tariff' and specifies filing and approval procedures.
  • Outlines pricing principles for wholesale and retail services, including cost-orientation, non-predatory testing, and margin squeeze tests.
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    • Grants the Authority powers to review, control, and enforce tariff regulations.
    • Mandates accounting separation for vertically integrated operators with SMP.
    • Specifies penalties for non-compliance, including fines and potential license revocation.

Requirements

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  • Telecommunications Operators must notify the Authority and seek approval for any intended introduction or change of a Controlled Tariff.
  • Notifications for tariff changes must include non-price terms that constitute a material change.
  • Telecommunications Operators must publicize or disclose tariffs in a transparent manner.
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    • Tariffs must take into account the underlying costs of providing a product or service.
    • Tariffs of similar Retail Services must be similar among buyers or classes of buyers.
    • Vertically Integrated Operators providing similar Wholesale Services must do so under similar terms and conditions.
    • Controlled Wholesale Tariffs must be cost-oriented and not unduly discriminatory.
    • Controlled Retail Tariffs must pass the non-predatory test or the margin squeeze test and be not unduly discriminatory.
    • Telecommunications Operators with Significant Market Power must publish their tariffs on their website.
    • The Authority shall publish adequate and up-to-date information on all approved Controlled Tariffs.
    • Where a Vertically Integrated Operator with SMP provides a Wholesale Service, it shall keep separate accounts for Wholesale and Retail Services.

Rights and permissions

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  • The Authority has the power to approve, request further information on, or deny filed tariffs.
  • The Authority can direct a Telecommunications Operator with SMP to delay the effectiveness of any tariff until approved.
  • The Authority can intervene to determine the lawfulness of tariffs.
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    • The Authority can review and control tariffs of any licensed Telecommunications Operator.
    • Interested parties have the right to submit comments during tariff review proceedings.
    • Decisions taken or orders issued by the Authority are subject to review and appeal in accordance with Articles 38 and 39 of the Proclamation.
    • The Authority shall protect the confidentiality of information provided by Telecommunications Operators.

Restrictions

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  • Telecommunications Operators shall not implement a filed tariff unless it has been approved by the Authority.
  • Operators with SMP must not charge unlawful tariffs.
  • Vertically Integrated Operators with SMP must maintain separate accounts for wholesale and retail services.
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    • Tariffs shall be justifiable, reasonable, and not unduly discriminatory.
    • Tariffs shall not be predatory or result in a margin squeeze.

Penalties

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  • Fines
  • Restitution
  • License revocation
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    • Suspension
    • Other administrative measures

Objectives

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  • Provide clarity on the rules and procedures for assessing tariff lawfulness, intervening to set tariffs, and reviewing tariffs of Telecommunications Operators.
  • Provide clarity on the rules Telecommunications Operators must follow to notify the Authority about changing or introducing new tariffs.
  • Prevent Telecommunications Operators from charging unlawful tariffs for their services.

Organizations

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  • Ethiopian Communications Authority
  • Telecommunications Operators

Legal references

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  • Communications Service Proclamation No. 1148/2019, Articles 6(2), 6(6), 45(5), 46(1), 48, 52(6), 35 through 38, 38 and 39
  • Council of Ministers’ Regulation issued pursuant to Article 52(6) of the Proclamation
Original sourcehttps://justice.gov.et/en/directives/telecommunications-lawful-tariffs-directive-no-797-2021/
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