Spain watchdog approves proposal to mobile termination rates

 

Spain’s communications watchdog CNMC has approved its proposal to drastically cut wholesale mobile rates charged by MNOs and full MVNOs to rival operators to terminate calls on their networks. The regulator earlier this year proposed slashing rates from EU1.09 to 70 cents a minute in 2018 and then to 66 cents in 2019 and to 64 cents from 01 January 2020, over 40% less than the current rate.

The watchdog added that calls originating from outside of the European Economic Area would not be subject to the price regulation and that, in view of market developments, it also proposed to declare all MNOs and full MVNOs as operators with significant market power (SMP) in the provision of voice call termination on their respective networks.

In its statement outlining the proposal, the CNMC said the average price of mobile termination in Europe currently stands at 94 cents a minute and, if the proposed measure is accepted, termination rates in Spain will be among the lowest in Europe.

The watchdog added that mobile voice rates have fallen by around 80% in Spain over the past decade and that wholesale price regulation has had a highly positive effect on the country’s competitive environment, increasing traffic and leading to the wide availability of flat rate plans.

The CNMC will now submit its proposal to the European Commission and Spain’s industry and economic ministries for approval.

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