Arcep notifies EC of planned mobile termination cuts until 2013

24 Mar 2011

The French industry watchdog Arcep has notified the European Commission (EC) and submitted to public consultation its plans on tariff supervision for mobile voice call termination in Metropolitan France for the period to the end of 2013. Under the plan, the regulator is looking to institute a progressive reduction in maximum mobile call termination rates (MTRs) in mainland France between 1 July 2011 and 31 December 2013. Currently, incumbent cellcos Orange France and SFR are charging EUR0.03 per minute for MTRs and Bouygues Telecom is levying EUR0.034. However, Arcep’s third phase of mobile termination rate regulation intends to usher in a more symmetrical approach to pricing. MTRs will come down to EUR0.02 for all three cellcos from 1 July 2011, before falling to EUR0.015 (six-month period from 1 January 2012), EUR0.01 on 1 July 2012 and to EUR0.008 from 1 January 2013. Importantly, Arcep notes that start-up operator, Iliad’s Free Mobile unit, will not be affected by the decision as it is not yet commercially active.