MTRs across the OECD decreased 53% between 2006 and 2011, Still Much Divergence between Countries

The OECD released a paper which aims to contribute to the current debate among regulators in OECD countries who are reducing or considering the phasing out of the fees telecommunication network operators pay for delivering telephone calls to mobile wireless providers, known as mobile termination rates (MTRs).

While the authors find that rates have decreased across the OECD by 53% between 2006 and 2011, from USD 0.1406 in 2006 to USD 0.0650 per minute, there is still much divergence between countries. Rates are at zero in Canada and vary from the lowest (the United States (USD 0.0007/min), Israel and Turkey (USD 0.0203/min) to the highest, including Estonia (USD 0.142/min) and Chile (USD 0.165/min).

The complexity and difference in the way that operators charge fees makes it difficult to draw a link between rates charged and prices paid by users for voice calls in different countries. But cutting rates to zero would strengthen competition in voice and other services, says the report. It could also speed up the introduction of innovative new VoIP services and encourage providers to offer a range of tariff models to meet the needs of their users, free from prices reflecting monopoly power on the networks of others.

Related: Developments in Mobile Termination

Source: OECD

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