OSIPTEL, the Peruvian telecoms regulator, today held a public hearing to present its proposals for the mobile termination rate (MTR) that operators charge for calls terminating on their networks. During this hearing, the mobile operators also had the opportunity to present their comments on the proposals.

OSIPTEL proposed to reduce the MTR from US $0.0160 per minute, established in a 2015 review, to US $0.00659 per minute. The charge will start applying from 2018 and be the same for all mobile operators. OSIPTEL also proposed to introduce a scheme to adjust the MTR each year as voice and data demand increases.

During the hearing, Frontier presented comments on OSIPTEL’s proposal. Jose Maria Rodriguez, Associate Director at Frontier, discussed various methodological aspects relating to the use of a hypothetical efficient operator assumption to estimate MTRs, the consequences of the annual adjustment mechanism, and the likely impact of MTR reductions on the market, particularly for low-income consumers.

Frontier has advised widely on the regulation of mobile termination rates in Europe, Latin America, Africa and the Middle East.

For more information, please contact Julia Caldano on j.caldano@frontier-economics.com, or call +34 91 343 2350.