Spanish operators to suffer 75% cuts to termination rates

The four major mobile operators in Spain are likely to have their mobile termination rates (MTR) cut by at least 75 per cent.

The Spanish telecoms regulator, Comision del Mercado de las Telecomunicacinoes (CMT), has launched a public consultation on the future of MTRs with the recommendation that Telefónica Moviles Espana (TME), Vodafone Spain and Orange Spain will be told to reduce their MTR by 75 per cent. The country's fourth-ranked operator, Xfera Moviles, will face close to an 80 per cent cut compared to its current rates.

However, the CMT has proposed that these cuts take place gradually with TME, Vodafone and Orange having their MTRs reduced to €0.352 per minute starting April 2012, down from their current rate of €0.404 per minute.

From October 2013, the rate for the three operators would then fall to €0.303 per minute, followed by further cuts every six months until December 2014 when the MTR would stand at €0.109 per minute.

Xfera Moviles faces being hit with larger cuts initially in an effort by the CMT to align MTRs across all four operators. The plan is that Xfera will have its MTR cut from €0.498 per minute to €0.417, and then falling to €0.336 per minute from Oct. 1, 2012.

The regulator is aiming for MTR symmetry across all four main operators by May 2013, with smaller operators, such as Yoigo, then being required to lower their rates to €0.255 per minute. The CMT proposals are open for discussion for one month.

For more:
- see this Telegeography article

Related Articles:
UK operators appeal Ofcom ruling on termination rate cuts
Ofcom hits UK operators with 80% mobile termination rate cut
Deutsche Telekom: Cuts to mobile termination rates are a 'disaster'
'Unfair' scream French operators over rate cuts
German operators propose increase in termination fees

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