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Belarus: Liberalisation to reduce tariffs Print E-mail
Friday, 23 June 2006
The liberalisation of Belarus’ telecommunication market is expected to reduce long-distance tariffs by 70% and Internet charges by 40%, in accordance with the draft program of development of the communication sector for 2006-2010.

Communication and IT Minister Nikolai Pantelei, who presented the draft program, noted that most local communication services are cross-subsidised from other services, but Belarus’ WTO accession obligations do not allow cross-subsidies.

“We will be raising local call tariffs to the level of profitability, but we also plan to rationalise expenses and reduce costs,” Pantelei said.

The draft program recommends provision of fixed or mobile communications in all villages by 2010 and Internet access in all agro-stations. The latter requires construction of a fibre-optic lines network. The program includes the objective to install 900,000 fixed lines and increase the number of fixed lines by 9% to 3.7 million. The number of mobile users was 4.8 million as of June 1, 2006. By 2010, the figure is expected to reach 6 million, Pantelei added.

First Deputy Communication and IT Minister Ivan Rak said Belarus would modify regulations governing its telecommunication sector starting in 2007 in order to meet its WTO obligations. The regulations will be modified to be WTO-compliant by August 19, 2006.

There will be a fund to finance social programs after Beltelecom goes public, Rak said. “A draft presidential ordinance has been developed to regulate the work of the fund. All license holders will have to transfer 1.5% of their revenues to the fund,” Rak said, adding that the rate is subject to change.

Source: Prime-Tass - WDR/Intelecon Regulatory News