charges made by owners/operators of telecommunications networks and services to operators and/or service providers interconnecting with them, for access and use, including the conveyance of their telecommunications traffic. Charges for connection and conveyance should be seen as distinct from access charges.
Finally, Portugal Telecom does not take account of the revenues that it will receive from competitors for the supply of interconnection services to them. Usually, interconnection charges are the single biggest cost to entrants of market participation. Consequently, the lifting of restrictions on the use of alternative infrastructure will in fact not reduce revenues, but in due course will be revenue generating.
Portugal submits that an average termination fee for European calls is Esc 35 per minute. Currently, mobile operators charge Esc 164 per minute for international calls. This is made up of an interconnection fee payable to Portugal Telecom of Esc 106 per minute leaving the sum of operating costs and profit margin at Esc 58 per minute.
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