The Spanish government has imposed a 14.5% cut in peak-time calls from fixed to mobile phones charged by market-leading telco Telefonica de Espana. The measure, which goes against Telefonica’s general strategy of increasing revenues from local calls while making long-distance and international rates more competitive, was introduced the same day that the authorities okayed other pricing schemes which it had been asking for. On Thursday the development ministry’s economic affairs commission also gave the green light to three of five proposed discount packages Telefonica wants to introduce on long-distance and international calls, basically entailing special rates for night- time calls to a list of predetermined ten numbers. The commission also ruled that Telefonica must discontinue a special discount scheme for users under 35, known as the Rock Plan, which it considered discriminatory. Meanwhile development minister Rafael Arias Salgado said his ministry will begin negotiations with the Telco on increases in local call charges which it was authorized to carry out last year. He said the talks will begin after 20 March, when the government will announce the February inflation rate. This week’s commission meeting did not alter the current structure of interconnection fees, Arias Salgado arguing that they permit ‘competition among the operators which are now beginning to appear in the Spanish market’. He added that, according to the European Commission, Spain’s fees are the second lowest among EU member countries, with only the UK’s fees being cheaper. The pressure for change may increase in the coming months, however. Arias Salgado said one of the issues his ministry will be discussing with Telefonica is the possibility of introducing billing by the second, rather than to the nearest minute. The number two fixed phone operator, Retevision, has already introduced this form of billing, however, and Retevision managing director Anna Birules said that, if Telefonica follows suit, she will immediately call for a compensatory renegotiation of the connection charges her company pays to Telefonica.
