Introduction of CPP about to decrease local cellular phone operator Utel’s income on voice traffic by 15%

‘Introduction of Calling Party Pays (CPP) system will lead to the following distribution of the voice traffic income: 68% of it will immediately go to the cellular communication operator whose network is servicing the called subscriber, the remaining 32% of income will mainly cover the call delivery expenses borne by Uralsvyazinform that is servicing the stationary phone communication. The losses of this distribution cannot be entirely compensated. We expect that only 40% of losses of Utel, the cellular communication operator owned by Uralsvyazinform, will be compensated by the future additional income on commercial calls of Utel subscribers from the stationary phones. After the introduction of CPP, we are going to accept the calls of Utel subscribers from the cellular phones serviced by other operators, even if the called subscribers have a zero balance or a slight overdraft. This will be convenient for our subscribers and profitable for the company. With CPP, we are to lose $1 per subscriber. In general, Utel income on voice traffic is to decrease by 15%, but at the same time, we are to gain about 4% of income on call completion. Hence the total loss is expected to amount to 11%,’ indicated Uralsvyazinform representative.

According to the marketing department of Uralsvyazinform JSC, the company’s latest changes in mobile phone servicing tariffs did not lead to an increase of on-network calling prices. The prices of outgoing calls to the stationary phones also remained on almost the same level. The main result of the tariff changes is a price increase of outgoing calls to the networks of other cellular communication operators. The changes are also expected to promote redistribution of traffic from stationary -mobile to the mobile-stationary direction.


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