Spanish regulator wants mobile termination fees cut by 43%

Wednesday 24 June 2009 | 09:43 CET | News
Spanish telecommunications regulator CMT has launched public consultations on the reduction of mobile termination fees. CMT proposes a 43 percent reduction of mobile termination fees for the three main mobile operators Telefonica Moviles Spain (Movistar), Vodafone Spain and Orange Spain, as well as a 52 percent adjustment for Xfera, which operates in Spain under the Yoigo brand name. The regulator proposes a two-year glide path for mobile termination rates, from 16 October 2009 to 15 October 2011. The final mobile termination fee proposed by the CMT will reach EUR 0.04, down by 43 percent over the current price of EUR 0.07. The exception to CMT's ruling is relatively recent market entrant Yoigo, which would be permitted to apply a higher call termination fee of EUR 0.049 at the end of the glide path, as it launched operations in an already mature market and has higher costs compared to its competitors. The fee reductions will be gradually implemented via price cuts every six months. The first price adjustment, planned for 16 October this year, is expected to set a single price of EUR 0.062 per minute for Telefonica Moviles Spain (Movistar), Vodafone Spain and Orange Spain and their respective MVNOs, and EUR 0.089 for Yoigo.

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