baltic it&t 2006, april 5-7, 2005, riga
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Baltic IT&T 2006, April 5-7, 2005, Riga. Implementation of the Universal Service Policy in Latvia Irina Klevecka, Dr. Janis Lelis Riga Technical University Telecommunication Association of Latvia. Definition s. - PowerPoint PPT PresentationTRANSCRIPT
1
Baltic IT&T 2006, April 5-7, 2005, Riga
Implementation of the Universal Service Policy in
Latvia
Irina Klevecka, Dr. Janis Lelis
Riga Technical UniversityTelecommunication Association of Latvia
2
Definitions
Universal Service – a minimum level and quality of services, which should be available to all users, irrespectively of their geographical location, and at affordable price
Net Costs – the difference between the operational results (revenues and costs) that would be obtained with and without Universal service obligations
Universal Service Fund – an independently administered fund, the resources of which are collected with the purpose to compensate the net universal service costs
3
Unsolved Questions In Latvia
Tariff rebalancing Preliminary evaluation of the uneconomic users and
regions Determination of the acceptable level of universal
service tariffs Elimination of the deficit of access to electronic
communications network Definition of financing sources Establishment of the Universal service Fund or other
financing mechanism
4
Evaluation of Uneconomic Customers
Monthly Income of Private Households
Source: Central Statistical Bureau of Latvia, 2004
268,9303,4
394,7
789,1
158,6
0
100
200
300
400
500
600
700
800
900
1st quintile 2nd quintile 3rd quintile 4th quintile 5th quintileMo
nth
ly In
com
e o
f P
riva
te H
ou
seh
old
s, E
uro
Monthly Income per Household Risk-of-poverty threshold
Risk-of-Poverty Threshold 223.00 Euro
5
Evaluation of Uneconomic Regions
Penetration Rate of Fixed Lines per 100 Population, Lattelekom
15,3 17
,2
17,2
17,4
17,4
18,0
18,2
18,3
18,4
18,7
18,8
19,4
19,7
20,0
20,1
20,2
20,9
20,9
21,2
21,8 23
,5
23,8
23,8
24,0
24,3
37,2
0
5
10
15
20
25
30
35
40
Bal
vu
Gul
bene
s
Sal
dus
Ludz
as
Pre
iļu
Krā
slav
as
Rēz
ekne
s
Bau
skas
Jēka
bpils
Tuk
uma
Mad
onas
Alū
ksne
s
Lim
bažu
Aiz
krau
kles
Dau
gavp
ils
Dob
eles
Jelg
avas
Kul
dīga
s
Cēs
u
Val
kas
Tal
su
Val
mie
ras
Ven
tspi
ls
Ogr
es
Liep
ājas
Rīg
as
Regions
Pen
etra
tio
n r
ate
of
fixe
d li
nes
per
100
po
pu
lati
on
, L
atte
leko
m, J
anu
ary
2005
Source: Lattelekom, 2005
6
Tariff Rebalancing
5% 7%
14%
20%
0% -1%-1% -1,7%
-12%-13%-7%
-12%-11%
-19%
-20%-23%
-14%
-21%
-35% -38%
-22%
-38%
-47% -49%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
Years
Consumer line rental Local call charge, 10 min.
Average expenditure (consumers) Average expenditure (users)
Consumer international basket National call charge, 10 min.
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Affordable Level of Universal Service Tariffs
Source: Central Statistical Bureau of Latvia, 2004
8,9 14,2 16,3 22,937,2
4,8 8,1 9,1 11,823,7
158,6
268,9 303,4
0
50
100
150
200
250
300
1st quintile 2nd quintile 3rd quintile 4th quintile 5th quintile
Mo
nth
ly In
com
e o
f P
riva
te H
ou
seh
old
s, E
uro
Income per Household
Current Consumption Expenditure for Communications
3% Threshold of Consumption Expenditure for Communications
789,1394,7
O U T O F S C A L E
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Affordable Level of Universal Service Tariffs
The residential monthly rental does not have to exceed 2% of the average monthly expenditure of households belonging to the 1st quintile group
Affordable level of tariffs for fixed telephony services has still not been defined
Source: Lattelekom, 2004
Central Statistical Bureau of Latvia, 2004
241,7
4,8 5,10
50
100
150
200
250
300
Monthly expenditure of the 1st quintile
group
2% threshold for themonthly rental
Current monthlyrental, Lattelekom
Euro
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Determination of the Net Costs of USO
Financing of USO
Financing via Public Funds that means funding from general government budgets including other public financing sources such as state lotteries
Distribution of the initial net costs of USO between providers of electronic communications networks and services
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Thank you for attention!
This work is partly supported by the European Social Fund
Irina Klevecka, [email protected], Ph.: (+371) 6006970
Janis Lelis, [email protected], Ph.: (+371) 9556340, 7227840