Posts filed under ‘Mobile Termination Rate’
Belgium’s second largest cellco by subscribers, Mobistar, has released financial results for its 2008 fiscal year, revealing earnings in line with forecasts. Total revenue for the operator for the twelve months ended 31 December 2008 rose 1.7% year-on-year to EUR1.57 billion (USD2.03 billion), although service revenue fell 0.1% to EUR1.44 billion. The drop in service revenue was attributed to continued pressure on prices and mobile termination rates (MTR), alongside the lowering of roaming fees for both voice and data. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 0.1% y-o-y to EUR591.6 million, while net profit for the twelve-month period also dropped to EUR280.1 million, down from EUR289.9 million a year earlier, a 3.4% decline. Mobistar has indicated that it expects to see net profit fall further in 2009 as a result of increased regulatory pressure and the declining economic climate.
Mobistar reported that its combined subscriber base at the end of the year had risen to 3.74 million, up almost 250,000 against the same time a year earlier. Average revenue per user (ARPU) however, had reportedly fallen by 5.9% over the year to EUR32.5 per month at 31 December 2008.
According to German press agency DPA, three of the country’s main cellcos have put forward a suggestion to increase mobile termination (MTA) fees from 1 April 2009. O2 Germany proposed the highest fee increase from the current EUR0.088 per minute to EUR0.1643, while rival T-Mobile Germany has suggested an increase from EUR0.0792 to EUR0.0839 per minute. Vodafone Germany wants to raise its fee to EUR0.0792 from the current EUR0.0823 per minute. E-Plus is the only operator to propose a decrease in MTA fees from EUR0.088 to EUR0.084. The German telecoms regulator BNA will publish its decision on 12 February 2009.
British mobile operators including Vodafone UK, T-Mobile and O2 may have to cut mobile termination rates (MTR) following a ruling by the Competition Commission, Reuters reports. In a submission to the Competition Appeals Tribunal (CAT) the Competition Commission has upheld an appeal by BT Group against regulator Ofcom. The submission calls for a reduction of termination rates; it recommends that the charges for connections to the networks of O2, Orange, Vodafone and T-Mobile be reduced to GBP0.04 (USD0.06) by 2010/11. Ofcom’s original recommendation was for a charge of GBP0.051. The Competition Commission has also recommended charges for connecting to the network of Hutchison Whampoa-owned 3 UK be lowered to GBP0.44 by the same date, against Ofcom’s GBP0.059 suggestion. The CAT will now consider the proposals, and the next case-management conference in the appeals process is expected on 2 February 2009.