EC Publishes “Recommendation” in Order to Curb Termination Fees
The European Commission set out clear guidance for EU telecoms regulators on the cost-based method to be used when calculating termination rates – the wholesale fees charged by operators to connect the call from another operator’s network which are part of everyone’s phone bill.
The guidance is in the form of a Recommendation that national regulators are obliged to take “the utmost account” of, the Commission stated.
The Recommendation indicates specifically that termination rates at national level should be based only on the real costs that an efficient operator incurs to establish the connection.
Eliminating price distortions between phone operators across the EU will lower consumer prices for voice calls within and between Member States, saving business and household customers at least 2 billion euros in 2009-2012, and help investment and innovation in the entire telecoms sector, according to the EC.
Higher mobile termination rates make it harder for fixed and small mobile operators to compete with large mobile operators. These divergences, and differing regulatory approaches, undermine the Single Market and Europe’s competitiveness.
See also: Explanatory note to the EC’s Recommentation
Related: ERG’s Common Position on symmetry of fixed call termination rates and symmetry of mobile call termination rates.
Source: EC
