Mobile Termination Rates (MTRs) are one of the most controversial regulatory issues in mobile telecommunications. MTRs are the wholesale payments between networks to compensate the receiving network for the costs incurred in terminating a ca ll. Such payments enable retail price structures where the receiving party does not have to pay to receive calls.Download
In most markets MTRs are a regulated service subject to price controls. Recently, the European Commission (EC) proposed a new cost-standard called pure-LRIC and recommended that it be used across the European Union (EU). The main driver appears to have been the political desire to move towards a uniform rate across the EU, consistent with a single economic market. The recommendation has created controversy within Europe as to whether this is the efficient level of MTRs. Notwithstanding this controversy, there is a growing trend in emerging markets to replicate the approach (and price level) recommended by the EC.
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