NPT sends MTR proposals to ESA

3 Dec 2014

The Norwegian Post and Telecommunications Authority (NPT) has sent a draft decision regarding mobile termination rates (MTRs) to the EFTA Surveillance Authority (ESA). As per the regulator’s plans, it has confirmed that it is seeking to reduce the rate to a maximum of NOK0.083 (USD0.012) per minute from 1 July 2015, before mandating further reductions, to NOK0.075 and NOK0.065 from 1 January 2016 and 1 January 2017, respectively. This draft decision, it noted, would apply to those companies deemed to hold significant market power (SMP) in the market for voice call termination on mobile networks (market 7), namely: Com4, Lycamobile, Network Norway, TDC, Telenor Norge, Tele2 Norge, NetCom (TeliaSonera) and Ventelo.

As noted in TeleGeography’s GlobalComms Database, in September 2014 the NPT had outlined plans under which all operators designated as holding SMP in the mobile market would be required to reduce MTRs in line with the aforementioned levels, although initially it envisioned the first drop – to NOK0.083 – being implemented from 1 April 2015. Having said it had reached its decision having conducted an updated market analysis of the sector, it noted in its initial announcement that it had also developed an updated version of the Long Run Incremental Cost (LRIC) model used for calculating the costs of termination.

Having now completed a national consultation on the proposals – submissions to which were due by 9 October 2014 – it noted that there were just two changes to its original plans, those being: that the first price reduction be introduced marginally later as noted earlier; and that the scope of the regulation is limited to apply only to call made from within the European Economic Area (EEA).