Mobile Termination Rates June 15 th th , 2005 , 2005 June 15 - - PowerPoint PPT Presentation

Mobile Termination Rates

June 15 June 15th

th, 2005

, 2005 Buenos Aires, Argentina Buenos Aires, Argentina

D.93 ITU Recommendation

• Charging and accounting in the

Charging and accounting in the international land mobile telephone international land mobile telephone service (provided via cellular radio service (provided via cellular radio systems systems

• Principles for charging

Principles for charging

• 2.1

2.1 The charge structure and level in any The charge structure and level in any country is a national matter country is a national matter

• The charge would normally consist of two

The charge would normally consist of two components: components:

• −

− a network access component; a network access component; − − a network utilization component a network utilization component

Principles for accounting

• accounting rates for international traffic

accounting rates for international traffic should be cost oriented,non discriminatory should be cost oriented,non discriminatory and taking into account the principles and taking into account the principles embedded in Recommendation D.140. embedded in Recommendation D.140.

Principles for accounting

• International traffic terminating at a mobile network will

International traffic terminating at a mobile network will be accounted for either: be accounted for either:

• a)

a) at the normal IDD rate or at the normal IDD rate or

• b)

b) in relationships where cost orientated rates have in relationships where cost orientated rates have been agreed, and where costs for terminating at a mobile been agreed, and where costs for terminating at a mobile network differ from those of terminating at a fixed network differ from those of terminating at a fixed network, a separate rate may be bilaterally agreed for network, a separate rate may be bilaterally agreed for traffic terminating at a mobile network. In each case traffic terminating at a mobile network. In each case both the rates for fixed and mobile traffic need to be both the rates for fixed and mobile traffic need to be cost cost-

• orientated based on the costs of terminating that
• rientated based on the costs of terminating that
• traffic. The difference between the two rates should be
• traffic. The difference between the two rates should be

as small as possible. as small as possible.

access, global average, in US$, 1992-2000

Note: CAGR = Compound Annual Growth rate. Source: ITU “World Telecommunication Development Report 1999: Mobile cellular”

547 410 231 180 86 75 1992 1994 1996 1998 1999 2000

Connection charge, in US$

CAGR, 1992-2000 = -32.1% p.a.

44.9 38.1 34.2 31.3 20.2 16.6 1992 1994 1996 1998 1999 2000

Monthly subscription, in US$

CAGR, 1992-2000 = -9.2% p.a

0,00 0,05 0,10 0,15 0,20 0,25 Lithuania Norway Finland C zech R ep. Sweden Denmark I reland I celand Slovak R ep. P

• land

Spain Latvia Austria UK Luxembourg Belgium Hungary G ermany France Slovenia I taly Netherlands G reece Malt a Estonia P

• rtugal

Switzerland

Count ries Eu ros Peak Of f peak Tot al

Average Mobile Termination Rate Average Mobile Termination Rate

(European countries, July 2004) (European countries, July 2004)

Mobile and fixed Settlem ent rates, Mobile/ Fixed ratio Mobile and fixed Settlem ent rates, Mobile/ Fixed ratio

• 0. 0545
• 0. 095

0.062 0.047 0.095

• 0. 1385

0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.16 Sout h Af rica Zimbabwe Zambia 2.23

• 1. 16

1.00

Af rica

0.0515 0.0104 0.0125

• 0. 055

0.128

• 0. 159

0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.16 0.18 Netherlands Germany Russia Mobile Fixed Mobile/ Fixed Rat io 15.29 10.24 0.94

Europe

0.085

• 0. 1525

0.0229 0.0624

• 0. 1321

0.12 0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.16 0.18 Chile Brazil Jamaica

• 5. 24

1.15

Latin America & the Caribbean

• 1. 36
• 0. 13

0.0295

• 0. 017

0.0228 0.025

• 0. 152

0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.16 Australia Japan Malaysia 5.7

• 1. 18

8.94

Asia Pacif ic From FCC data Notice of Inquiry October 2004

Implications

• D. 93 principles ignored
• D. 93 principles ignored
• Outpayments by most developing countries

Outpayments by most developing countries to developed countries. to developed countries.

• Local toll rates continue to rise

Local toll rates continue to rise – – impact on impact on USO USO

• Lack of support for ITU

Lack of support for ITU

Way Forward

• Local regulations and Policy to address

Local regulations and Policy to address local interests...Jamaica local interests...Jamaica

• Dispute resolutions mechanisms (int

Dispute resolutions mechanisms (int´ ´l) l) needed. needed.

• United effort.

United effort.

• Alternative arrangements, including refile

Alternative arrangements, including refile

Thank You

Cleveland Thomas Cleveland Thomas cathoma1@tstt.co.tt cathoma1@tstt.co.tt