Entel calls for ‘substantial’ reduction in MTRs

31 Oct 2014

Chilean backed cellco Entel Peru, which was recently rebranded from its previous moniker ‘Nextel del Peru’, says that mobile termination rates (MTRs) should be ‘substantially reduced’ to encourage competition. Gestion cites Entel’s Legal and Regulatory Manager as saying that Entel’s expansion in the Peruvian market will depend on sector watchdog Osiptel’s regulatory framework. The spokesperson has called for substantial reductions in MTRs as it embarks on a new wave of expansion in the wake of its rebranding: lower MTRs tend to favour smaller providers, by reducing the cost of their customers connecting to the networks of their entrenched rivals, whilst incumbent players are usually more reliant on higher MTRs as an additional source of income. Lower MTRs would give Entel, and newcomer Bitel – owned by Vietnam’s Viettel – a boost, enabling them to establish a toehold in the sector.

Peru, Entel Peru