By ERR

The Ministry of Economic Affairs and Communications (MKM) has begun drafting legislation to introduce a regulatory fee for telecommunications companies, which will be used to fund the services of the Consumer Protection and Technical Regulatory Authority (TTJA). According to the draft, the regulatory fee would be 0.2 per cent of the company’s telecommunications service turnover.

The Ministry of Economic Affairs and Communications (MKM) has sent a draft intention to amend the Electronic Communications Act to telecommunications companies, ministries and other stakeholders for coordination. This draft aims to create a funding model for the services of the Consumer Protection and Technical Regulatory Authority (TTJA).

The proposed change would involve telecommunications companies contributing to the funding of TTJA, the regulatory body for the telecommunications sector, through a regulatory fee. This fee would, in turn, enhance the quality and development of the services provided by the state to these companies, according to MKM.

Under the draft intention, starting in 2025, a regulatory fee of 0.2 percent of telecommunications service turnover would be imposed on companies with an annual turnover of at least €500,000(US$534,660.000) from telecommunications services. There are approximately 20 such companies in Estonia, and their contributions would total around €900,000, partially covering the operational and investment needs of TTJA as the telecommunications regulator. More than half (56 per cent) of TTJA’s telecommunications-related operating costs would continue to be covered by the state budget. A similar fee model is already in use by the Competition Authority.

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“The new funding model essentially means that telecommunications companies will partially pay for the services that the state provides in the interest of their business. Such a funding model is in use in most European Union countries, and it is reasonable to consider this solution for Estonia as well,” said minister of economic affairs and information technology Tiit Riisalo.

According to Riisalo, the draft intention is an official proposal introduction. The feedback received and the ensuing discussion will determine whether and in what form the new funding model will proceed.

The primary services provided by TTJA to telecommunications companies include mobile frequency planning, market analysis and regulation, dispute resolution between companies, public involvement in telecommunications planning, management of continuity, cybersecurity, crisis regulation and resolution of radio interference issues.

Feedback on the draft intention is expected within a month.

Editor: Mirjam Mäekivi, Marcus Turovski