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CAS: GSM gateways should be allowed


2007-06-08

The Adam Smith Centre (CAS), a Polish think tank, has suggested that the telecommunications market regulations should allow the use of Fixed Cellular Terminals (FCT), or so-called GSM gateways, which enable calls from fixed-line networks to mobile ones for the same fee that is charged for calls from mobile to mobile.
This would reduce the costs of fixed-to-mobile calls, which, according to CAS, are the main reason individuals give up the fixed-line telephony. The declining number of fixed lines has been described by the CAS experts as having a detrimental effect on the economy. They also emphasise that the decrease of fixed-line networks users will result in the increase of exploitation cost per user and, eventually, in the increase of costs of services that are being provided by means of these networks such as broadband internet access.

Therefore, the CAS insists that the three-year plan of decreasing mobile termination rates revealed in April 2007 by the Office of Electronic Communications (UKE) is not sufficient to prevent this. The experts point out that the regulation is meant not to increase the competition but to replace it. They insist that the law should not allow the GSM operator to forbid the use of FCT as this would decrease the prices of fixed-to-mobile calls and reverse the downward trend of the number of fixed lines in Poland.


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