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Friday, October 16, 2009

Get tougher with termination rates, Europe tells Ofcom

Okay, it’s not mobile termination rates but fixed-line termination rates… although the latest message from EU Telecoms Commissioner Viviane Reding could be the shape of things to come for the mobile industry.

The European Commission has asked Ofcom to impose price control and non-discrimination obligations on all communication providers regarding their fixed termination rates (FTRs). Ms Reding says smaller fixed network operators aren’t being regulated tightly enough, which means they’re able to charge high termination rates resulting in higher call prices for consumers of other fixed and mobile operators who want to call the subscribers of these smaller networks. The EC also points out – as it has for MTRs – that termination rates should be based on the costs incurred. [Press release]

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