Assessing the impact of lowering mobile termination rates

Following the EC's recommendation on mobile termination charges, Frontier (Europe) has been commissioned by a group of European operators (Deutsche Telekom, Orange, Telecom Italia, Telefónica and Vodafone), to examine the merits of moving to a system of very low mobile interconnection charges.  Frontier examined the economic principles underlying the relationship between mobile termination rates and mobile retail prices and developed a model to quantify the expected impact of a drastic reduction in mobile termination rates on retail mobile tariffs, and mobile penetration in Europe. Frontier also examined and critically reviewed the experience from the US mobile market.

Frontier will present the results of its analysis on Friday 12 September at a press conference in Brussels.

Frontier publication_MTRimpact.pdf

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