MegaFon to appeal interconnect ruling

1 Mar 2007

A Russian arbitration court has ruled that the country’s third largest cellular operator MegaFon must offer the same interconnect cost to smaller rivals that it does to its two larger competitors, MTS and Vimpelcom. The big three operators cut the interconnect rate for calls between their respective networks to RUB0.95 (USD0.036) per minute in July last year, while keeping the fee charged to minor players at RUB1.10. Vimpelcom and MTS moved to bring all charges down to the lower level when regulators threatened legal action in October, but MegaFon decided to fight its case in court. Prime Tass says that MegaFon intends to launch a new appeal against the ruling. The news agency quotes Alexei Nichiporenko, MegaFon’s first deputy general director, who said: ‘We are still convinced that the decision of the Federal Antimonopoly Service contradicts the law.’

Russia, MegaFon