ACCC mobile termination charge principles and prices for 2009-2011

20 Mar 2009

The Australian Competition & Consumer Commission (ACCC) has issued final pricing principles and indicative prices for the domestic mobile termination rates (MTRs) for the period 1 January 2009 to 31 December 2011; the indicative price for the MTRs will be AUD0.09 (USD0.06) per minute. The final pricing principles continue to adopt a cost–based pricing approach based on a total service long run incremental cost framework. The regulator said that it believed maintaining termination charges at AUD0.09 for three years would provide a higher level of certainty for network operators, alongside promoting efficient investment. The ACCC did note, however, it remained concerned that reductions in the MTR over recent years had not been passed on to consumers making fixed to mobile calls. In a draft report, the regulator also proposed that the status of MTRs as a declared service be extended for a period of five years.