Regulator orders staggered interconnection price cuts; seeks level field by Sep-08

4 Aug 2006

Spain’s telecoms regulator, the Telecommunications Market Commission (CMT), has ordered cuts to termination call rates charged by the country’s three mobile operators, writes Telecompaper. The CMT said its recent analysis of the market for termination rates had shown the sector was not competitive and that all three operators were in a dominant position to set prices. In response, it has mandated progressive, constant price cuts for each operator from October, with a fixed average termination rate ceiling. Under the ruling, Vodafone Spain must implement a 16.28% cut in interconnection tariffs every six months, whilst Telefónica Móviles España must lower its charges by 15.85% and France Télécom España unit Amena by 17.78%, with the aim of all three operators reaching a standard EUR0.06 charge by September 2008.