Telcel offers lower MTRs to both fixed and mobile rivals

21 Nov 2011

Telcel, the Mexican wireless subsidiary of Latin American telecoms giant America Movil (AM), has reportedly agreed to reduce mobile termination rates (MTRs) for incoming calls from both rival cellular operators and local fixed line providers, the Wall Street Journal reports. It is understood that Telcel has already signed new agreements for the lower rates with NII Holdings subsidiary Nextel de Mexico and alternative fixed line operator Marcatel, while the terms of interconnection with fixed line incumbent and fellow AM subsidiary Telefonos de Mexico have also been revised. Looking forward Telcel has said it expects to extend the newly-agreed rates to all fixed and mobile operators that terminate calls on its network.

As per the revised rates, Telcel will charge MXN0.39 (USD0.03) per minute for incoming calls, with this rate to fall to just under MXN0.31 in 2014. It is also understood that the new pricing structures also includes billing calls on a per-second basis, instead of rounding up to the next nearest minute; it is understood that the change in billing methodology means an effective average reduction for MTRs of around 22% per year.