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France cuts mobile termination rates, Germany under pressure
Published: 4 December, 2008
European customers could see further reductions in their mobile charges, with the European Commission getting aggressive on termination rates as well as cutting data roaming fees. Following news that the French regulator, Arcep, is to force cellcos to cut termination rates (the fees operators charge to connect calls from other networks), the EC is now demanding action from Germany.
According to reports, the Commission has requested that German regulator BNetzA hand over all the information it has on mobile carriers' termination rates in the country, which the agency has failed to supply on two previous occasions since 2006. The EC says it needs the data as part of the Article 7 procedure for EU clearance of national regulatory measures, but BNetzA argues that rates data is unnecessary for this - heralding a wider showdown over Germany policies.
Meanwhile, Arcep has decided in favor of imposing drastic wholesale mobile termination rate cuts on French operators, effective from the second half of next year. From July 1 2009, rates will come down from €0.065 to €0.045 per minute for Orange France and SFR, and from €0.085 to €0.06 for relative newcomer Bouygues Telecom. These rates will sink further in the second half of 2010, with Orange and SFR being allowed to charge a maximum of €0.03 per minute by then and Bouygues €0.04.This will more than achieve Arcep's previously set target of a 30% reduction, which it says will reduce customer prices and bring mobile service rates more into line with fixed line charges.
