17.05.2005

Mobile operators reduce wholesale prices substantially - FICORA is content with trend

16.5.2005

Mobile operators reduce wholesale prices substantially – FICORA is content with trend

Sonera Mobile Networks Oy, Elisa Matkapuhelinpalvelut Oy and Finnet Verkot Oy have agreed on substantially reducing charges on wholesale voice call termination i.e. mobile termination fees. The new prices will enter into force on 1 June 2005. These operators have also revoked all complaints on mobile termination charges addressed to FICORA.

FICORA is of the view that the agreement now reached by mobile operators promotes the functionality of communications networks and ensures, as referred to in the Finnish Communications Market Act, that communications networks and communications services are available under reasonable conditions to all telecommunications operators and users. Lower prices reduce price distortion between regulated mobile voice call termination compensation and retail prices, in particular. The retail price incurred from users and consumers of mobile communications services has in many cases been lower than the price operators charge one another for termination.

Sonera reduces its mobile termination fees by 20 percent from the former 8.4 cents to 6.8 cents per minute. Elisa reduces its price from 10 cents to 8.4 cents per minute. Finnet now charges the above-mentioned operators 10 cents per minute. The new fees are clearly lower than EU average.

Also, in the future, FICORA will actively follow mobile termination pricing, whose regulation will continue to be among the authority’s areas of focus.

FICORA’s opinions:

• Elisa Matkapuhelinpalvelut Oy (in Finnish)

• Finnet Verkot Oy (in Finnish)

• Sonera Mobile Networks (in Finnish)

Further information:
Ms Rauni Hagman, Director-General +358 9 6966 401, mobile +358 40 561 3499, and
Ms Johanna Juusela, Deputy Director, tel. +358 9 6966 878,
mobile +358 40 542 7132