Commission advises CMT to regulate mobile call termination costs

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The Comisión del Mercado de las Telecomunicaciones (CMT) was invited by the European Commission (EC) to consider the regulation of the provision of mobile voice call termination services, regardless of their origin (mobile to mobile or fixed to mobile).

The European executive considers that the amount charged for mobile terminations in Spain must reflect costs, in order to ensure effective and sustainable competition in that market.

Although CMT imposed some obligations on operators with respect to fixed-to-mobile termination, it concluded that there are no competition problems in the segment of mobile-to-mobile termination, and therefore regulation is unnecessary.

The Commission, however, takes a different view and argues that the significant market power of mobile operators was not in itself sufficient to ensure competitive mobile-to-mobile termination rates and that CMT has no evidence to show that market conditions current prices are sufficient to guarantee these competitive rates.

Related News:

2005-06-30 – PT’s fixed-mobile retention prices should be reduced by 26% by 2006

2004-12-28 – Anacom assigns Significant Market Power to the 3 mobile operators and reduces fixed-mobile termination