09.04.2009
Telecoms operators agree on new mobile termination charges - FICORA requires price reductions in 2010 and 2011
DNA Finland Oy, Elisa Oyj and TeliaSonera Finland Oyj have reached a conclusion on the level of mobile termination charges. The operators had already earlier agreed on introducing symmetric prices in December 2009. In addition to the symmetric price level, a 10 per cent drop in prices has been agreed upon to take place in 2010.
In December, DNA will drop its mobile termination charge from 5.4 cents per minute to 4.9 cents per minute. This will bring the prices of all mobile network operators to the same level i.e. lower than the EU average. Next year, all operators will drop their prices from 4.9 cents per minute to 4.4 cents per minute.
A telecoms operator charges a mobile termination charge from other operators for receiving traffic in its network. Termination between operators is a primary requirement for communication between subscribers of two different operators. It is important that mobile termination fees are reasonable so that all telecoms operators and users would have access to communications networks and services, and that competitive conditions would be equal to all.
FICORA maintains that in order for the markets to be effective, it is essential that operators have reached a settlement about the new price level which will further drop in 2010. In addition, the removal of price differences among mobile operators in December is consistent with FICORA's view.
In FICORA's view, the price drop in mobile termination charges now agreed upon is not, however, sufficient in the long run. Therefore, the authority requires that, by 2011, the fees drop further (FICORA's opinion from 2008: Updated assessment principles for the pricing of mobile termination).
Reduced wholesale charges for SMS also promote competition
In addition to voice call termination charges, FICORA has examined mobile termination charges for SMS traffic which are currently unregulated. Unlike for calls, termination charges for text messages in Finland are among the highest in Europe. FICORA has required that also these prices will drop and allows mobile network operators to carry on negotiations until June.
FICORA will continue to monitor termination pricing actively. Mobile termination regulation continues to be among the authority’s focuses.
For more information on termination pricing of mobile operators, see telecoms operators' own websites.
Further information:
Marja Lehtimäki, Head of Communications Markets Supervision, tel. +358 9 6966 857, +358 50 320 5181
Liisa Räsänen, Head of Market Analysis Unit, tel. +358 9 6966 819, +358 040 846 9926
