The Norwegian Post and Telecoms Regulatory Authority (NPT) has announced that it has designated mobile virtual network operator (MVNO) Lycamobile as having significant market power (SMP). The regulator’s decision means that certain obligations will now apply to the virtual operator with regards to termination charges, and Lycamobile will be required to reduce its rates gradually over the next three years. In line with the NPT’s previously implemented framework, issued in September 2010, Lycamobile will follow the same fee reduction plan as the market’s other operators that have been designated with SMP, those being: NetCom, Telenor, Network Norway, TDC Nordic, Tele2 Norge and Ventelo.
Lycamobile’s current pre-regulation termination rate is NOK0.40 (USD0.07) per minute, but this will fall to NOK0.30 per minute from 1 July 2011. Subsequently the rate will fall to NOK0.20 from 1 July 2012 before dropping once more, to NOK0.15 from 1 January 2013.