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AKEP approves plan to reduce termination fees on fixed networks starting next year

2025-11-05 11:55:00, Aktualitet CNA

AKEP approves plan to reduce termination fees on fixed networks starting next

The Electronic and Postal Communications Authority (AKEP) has approved the final document of the analysis of the fixed telephony markets in Albania, which includes the wholesale markets for the termination and transit of calls on public telephone networks from a fixed location. The analysis, approved by decision of the Governing Council no. 19, dated 3 November 2025, constitutes one of the most important acts of the new legal framework in the field of electronic communications, in implementation of law no. 54/2024 “On Electronic Communications”.

New regulation for termination fees

According to AKEP, fixed network termination rates (FTR) will be significantly reduced gradually, reaching a reduction of 57% by 2027. For the One Albania operator and alternative fixed network operators, the current tariff of 0.7 lek/minute (excluding VAT) will be reduced to: 0.3 lek on March 1, 2026, 0.15 lek on September 1, 2026, 0.07 lek on March 1, 2027.

AKEP emphasizes that this reduction is based on the practices of BEREC and the European Commission, using the "benchmark" methodology of EU countries and the region, as the use of the "Bottom-Up LRIC" cost model would not be justifiable in a market with a low fixed telephony penetration rate and ever-decreasing usage.

Who has significant market power (SMP)?

From the analysis, One Albania is assessed as an operator with Significant Market Power (SMP) for call termination on its fixed network. Also, alternative fixed network operators, as part of the regulation, remain subject to obligations for transparency, non-discrimination, access to network elements and regulated termination pricing.

On the other hand, AKEP has decided to remove regulation from the fixed call transit market, deregulating this segment after the three-criteria test that confirmed the existence of effective competition. This means that the regulatory obligations that were in force for the former Albtelecom will be gradually removed, according to the decision of the Board of Directors.

Structural changes and market consolidation

In the period 2020–2024, the fixed communications market in Albania has undergone profound structural changes, as a result of major consolidations and concentrations. Thus, Vodafone Albania gained control of ABCom and now also operates in the fixed network market, while 4iG Nyrt. acquired Albtelecom and One Telecommunications, which today operate together under the name One Albania. Both operators, Vodafone and One Albania, now offer combined fixed and mobile services, becoming the main competitors in the fixed broadband market as well.

AKEP considers this consolidation as an important structural development that has significantly changed the competitive balance in the market, requiring new regulation to maintain sustainable competition and consumer protection.

The new legal and European context

AKEP's analysis is based on the European Electronic Communications Code (Directive 2018/1972/EU) and Regulation (EU) 2021/654, which establish the harmonisation of termination rates across the EU. Albania, in the process of aligning with this framework, applies new standards of transparency, competition and fair regulation of electronic markets.

AKEP emphasizes that the goal of this process is to promote sustainable competition, efficiency of fixed networks and the provision of quality services and affordable prices for end users, including groups with special needs.

With this decision, AKEP concludes an extensive 45-day public consultation process, in which the main operators and the Competition Authority participated. The final document defines a new regulatory framework that reflects the new reality of the fixed and mobile convergence market in Albania and aligns the country with European standards for the regulation of electronic communications./ekofin