CMT unveils MTR proposals for 2012-2014

6 Dec 2011

Spain’s Comision del Mercado de las Telecomunicacinoes (CMT) has announced the launch of a public consultation regarding the revision of mobile termination rates (MTRs) for all four mobile network operators: Telefonica Moviles Espana (TME), Vodafone Spain, Orange Espana and Xfera Moviles (Yoigo). Under the regulator’s proposals the three larger cellcos all face reductions of around 75% to their existing MTRs, while Xfera will see an almost-80% drop compared to its current rates.

The CMT has laid out a two-year glide path for the reduction in fees, and for TME, Vodafone and Orange it has proposed that MTRs are reduced to EUR0.352 (USD0.047) per minute from 1 April 2012, down from the trio’s current rate of EUR0.04 per minute. The fee will then fall further, to EUR0.0303 per minute from October 2013, before declining further once every six months until December 2014, at which date it will stand at EUR0.109 per minute. Xfera meanwhile faces larger initial cuts to its rates as the CMT looks to end asymmetric prices; from 1 April 2012 the fourth-placed player will see its MTR drop from EUR0.498 per minute to EUR0.417, before falling further, to EUR0.336 per minute from 1 October 2012. Rate symmetry between all four cellcos, meanwhile, will be achieved from 1 May 2013, at which date Yoigo and its three larger rivals will be required to reduce termination rates to EUR0.255 per minute; after this date Xfera’s MTR will fall in line with those of the three other operators.

The proposals are now subject to a public consultation, which will be open for a month following publication in the official gazette.