Mobile Termination Rates June 15 th th , 2005 , 2005 June 15 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 The charge structure and level in any The charge structure and level in any � 2.1 � 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- -orientated based on the costs of terminating that orientated based on the costs of terminating that cost 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$, 1992-2000 Monthly subscription, in US$ Connection charge, in US$ CAGR, 1992-2000 = -9.2% p.a CAGR, 1992-2000 = -32.1% p.a. 44.9 38.1 547 34.2 31.3 410 20.2 16.6 231 180 86 75 1992 1994 1996 1998 1999 2000 1992 1994 1996 1998 1999 2000 Note: CAGR = Compound Annual Growth rate. Source: ITU “World Telecommunication Development Report 1999: Mobile cellular”
Average Mobile Termination Rate Average Mobile Termination Rate (European countries, July 2004) (European countries, July 2004) 0,25 Peak 0,20 Of f peak Tot al 0,15 ros Eu 0,10 0,05 0,00 UK Malt a I taly oland France Finland Sweden Denmark I reland I celand Spain Latvia Austria Belgium Hungary ermany reece Estonia Norway ep. Luxembourg Netherlands Lithuania ep. Slovenia ortugal Switzerland zech R Slovak R P G G P C Count ries
Mobile and fixed Settlem ent rates, Mobile/ Fixed ratio Mobile and fixed Settlem ent rates, Mobile/ Fixed ratio Europe Latin America & the Caribbean 0.18 15.29 0.18 0. 159 Mobile 0. 1525 0.16 0.16 Fixed 10.24 0. 1321 0.14 0.14 0.12 0.128 Mobile/ Fixed Rat io 0.12 0.12 0.1 0.1 0.085 0.08 0.08 0.0624 0.06 0. 055 0.06 0.0515 5. 24 0.04 0.04 0.0229 0.02 0.0125 0.02 1. 36 0.0104 1.15 0.94 0 0 Chile Brazil Jamaica Netherlands Germany Russia Asia Pacif ic 0. 152 0.16 0.16 Af rica 0. 1385 0.14 0.14 0. 13 0.12 0.12 0. 095 0.095 0.1 0.1 8.94 0.08 0.08 0.062 0. 0545 0.06 0.06 5.7 0.047 From FCC data 0.04 0.04 Notice of Inquiry 0.0295 0.025 0.0228 October 2004 0. 017 0.02 2.23 0.02 1. 16 1.00 1. 18 0 0 Sout h Af rica Zimbabwe Zambia Australia Japan Malaysia
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
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