NPT confirms timeframe for Lycamobile termination rate reduction

27 Jun 2011

The Norwegian Post & Telecoms Regulatory Authority (NPT) has announced that mobile virtual network operator (MVNO) Lycamobile Norway will be required to gradually reduce its termination rates between next month and 2013. The confirmation of the termination rate plan comes after a regulatory decision in March 2011 that designated Lycamobile as having significant market power (SMP), which as previously reported by CommsUpdate, stipulated that Lycamobile would follow the same fee reduction plan as the market’s other operators that have been designated with SMP. Commenting on the development, Willy Jensen, director of the NPT, noted: ‘We remain of the opinion that [Lycamobile] should be paid the same rates for similar services. The resolution directed against Lycamobile is a step in the right direction to achieve symmetrical prices.’

With Lycamobile’s current termination rate set at NOK0.40 (USD0.07) per minute, this will now fall to NOK0.30 per minute from 1 July 2011, before being reduced further to NOK0.20 from 1 July 2012 and NOK0.15 from 1 January 2013.