EC urges Telestyrelsen to reduce Hi3G mobile termination rates

1 Sep 2009

The European Commission (EC) has written to Denmark’s telecoms regulator, the National IT and Telecom Agency (Telestyrelsen), asking it to abolish the difference in mobile termination rates between the incumbent operators and Hi3G Access Denmark, writes cellular-news. From 1 May 2010 Telestyrelsen is proposing to reduce mobile termination rates to DKK0.43 (USD0.08) per minute for cellcos TDC, Telenor and Telia Denmark, down from the current rate of DKK0.54, but plans to cut Hi3G’s fee to DKK0.51 per minute at the same date, down from DKK0.74. The EC commented on the fact that Telestyrelsen allows Hi3G to charge higher asymmetric termination rates than the other operators. Despite acknowledging the greater reduction imposed on Hi3G’s rates compared to its rivals, as well as the Danish regulator’s intention to phase out the asymmetry in the next price decision, the EC stressed that asymmetric rates may not remain in force for more than four years following market entry, unless justified by objective reasons outside the control of the operator concerned.