Regulator relaxes interconnect rate cuts, wants standard EUR0.07 charge by 2009

29 Sep 2006

Spain’s telecoms regulator, the Telecommunications Market Commission (CMT), has mandated cuts to mobile termination call rates and ordered the country’s three mobile operators to reach a standard EUR0.07 tariff by April 2009. The announcement is a relaxing of its previous goal of reaching a standard EUR0.06 charge by September 2008. 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, Telefónica Móviles España and France Télécom unit Amena must reduce their rates every six months.