Review of Wholesale Mobile Termination Rates - Decision, August 2010

The MCA is today publishing the response to consultation and decision on the new wholesale mobile termination rates which will be applicable as from 1st September 2010.

A near 30% reduction in the mobile termination rates will be applicable where mobile termination rates will be reduced from the current €0.0866 to the new rate of €0.0617. The MCA consulted on the new rate in May 2010 and also notified the new rates to the EU Commission following the responses received in June 2010. The MCA has taken utmost account of the EU Commission’s comments received in July 2010.

The main decision is to reduce rates to €0.0617 based on the proposed 75th percentile benchmarking methodology. This rate shall be applicable as from 1st September and shall remain in place until further notice but not less than six calendar months.

The second decision states that, going forward, the MCA will be using the BEREC Snap Shot report instead of the Implementation Report as its data source for its interim benchmarking methodology. Moreover, in the eventuality that 25% of Member States report rates based on ‘pure’ LRIC, the MCA will shift its methodology to that based on a target rate calculated from those termination rates emanating from a ‘pure’ LRIC model.

This decision shall also serve as an advance notice to the market that once an official report, having a representative sample of 25% of EU states using LRIC methodology as prescribed by the Commission Recommendation, becomes available, the MCA will initiate the process to revise the MTR in line with such benchmarking methodology.