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Belgium to reduce mobile termination rates
01 February 2010
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[Belgacom]
[Mobistar]
[regulation]
The Belgian telecom regulator is planning to slash the fees that companies charge for handling calls and data from other networks. The recommended 50% cut in the rates threatens a significant revenue source for domestic operators Mobistar and Belgacom.
Belgium is looking to reduce the network fees, known as mobile termination rates, to 1.07 euro cents by 2013, and the first cut will be effective July 2010.
The cuts are a response to pressure from the European Commission for national telecom regulators in the European Union to lower mobile termination rates. The commission has argued that rates are too high in some EU countries and vary between companies, even within the same country.
Mobistar is expected to lose most from the Belgian proposal, because it is a net receiver of MTR fees, while Belgacom, a net payer of MTR fees will not be affected much by the cuts, according to analysts. GTB
Comment: This move by Belgium appears to be a pre-emptive preparation putting the country ahead of the curve and the new EU super-regulator. An important point to consider is the 50% cut, at the moment, remains only a recommendation.