CMT announces mobile termination rate proposals

24 Jun 2009

The Spanish telecoms regulator, the Telecommunications Market Commission (CMT), has released its proposals for the continued reduction of mobile termination rates (MTRs), Cinco Dias reports. The CMT is proposing that MTRs for all four network operators, including relatively new entrant Xfera Moviles (Yoigo), will be reduced to EUR0.04 (USD0.06) by October 2011. The regulator has said that the rate will be reduced gradually over a two-year period, with the first reduction expected in October 2009; Telefonica Moviles Espana (Movistar), Vodafone Spain and Orange Espana will initially drop their rates by EUR0.0075 while Yoigo would face a reduction of between EUR0.015 and EUR0.012. The cuts however, are less than expected, with initial estimates that MTRs could be set as low as EUR0.0245. CMT chairman Reinaldo Rodriguez, has stated though that he believes there is still room to lower prices in the coming years. All four operators will now be given the opportunity to comment on the proposals before the final ruling is made by the regulator.

In April 2009 the CMT announced that Telefonica Moviles Espana, Vodafone Spain and Orange Espana would have to reduce MTRs to EUR0.07 by October that year as part of a new glide path. Yoigo, meanwhile was made exempt from that round of reductions, with the CMT allowing it to maintain its EUR0.10 rate on the basis that it has higher operating costs than the three other operators.