Download Mobile termination rates in the EU15 European jurisdictions

Mobile termination rates in the EU15 European jurisdictions: recent developments
Key points
•
European mobile termination rates (MTRs) for 2007 range from 5.89 euro cents per minute
(cpm) (9.87 Aust. cpm) in Sweden to 11.72 euro cpm (19.63 Aust. cpm) in Spain.
•
Mobile termination rates in the EU15 are declining at 15% per year on average. Between
2006 and 2008 European regulators reduced MTRs in all jurisdictions for which new rates
have been announced.
•
The following table gives average published MTRs for 2006, 2007 and 2008 for all mobile
operators in each of the EU15 jurisdictions (with operator rates weighted by number of
subscribers). Note that not all countries have published rates for 2007 and 2008.
Mobile Termination Rates: European Jurisdictions
A$ cents per minute
30
25
20
2006
15
2007
2008
10
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•
The current MTR in Australia (12 Aust. cpm) is below average EU15 rates. The weighted
average rates for all regulated operators in the EU15 are as follows:
o 2006: 11.08 euro cpm (18.56 Aust. cpm)
o 2007: 9.37 euro cpm (15.70 Aust. cpm)
o 2008: 7.93 euro cpm (13.28 Aust. cpm)
•
European regulators are increasingly using ‘bottom-up’ cost models to determine MTRs.
o Regulators in the Netherlands and Sweden are now using ‘bottom-up’ models.
MTRs in these countries are below average. In Sweden the 2007 MTR is 9.87 Aust
cpm. In the Netherlands, the 2008 MTR (for large operators) is 10.75 Aust cpm.
o Regulators in the UK and Norway are currently developing draft models. Bottom up
models are at early stages in Austria, Germany, Belgium.
o In January the ACCC released a new bottom-up cost model for Australia. The model
calculates a termination cost of 5.9 Aust cpm for its central scenario
Country averages
The following table shows average published MTRs for all mobile operators in each EU15
country converted to Australian currency at an exchange rate of 1 euro : A$1.68.1 It also shows
average MTRs for EU15 countries and the Australian MTR for comparison.
Country Average Mobile Termination Rate (Aust cpm)
Austria
Belgium
Denmark
Finland
France
Germany
Greece
Ireland
Italy
Luxembourg
Netherlands
Portugal
Spain
Sweden
United Kingdom
EU15 WEIGHTED AVERAGE
EU15 AVG. (regulated operators)
AUSTRALIA
2006
17.60
24.67
18.99
13.23
16.41
18.64
26.07
19.10
21.13
21.39
17.52
20.43
22.23
11.63
15.86
18.89
18.56
15.00
2007
14.30
17.72
17.09
11.54
13.06
15.23
19.36
2008
12.23
14.20
14.69
16.70
19.16
14.47
18.43
19.63
9.87
15.31
15.97
15.70
12.00
14.42
15.24
11.43
16.66
14.63
13.52
13.28
Larger operators
Average mobile termination rates for the larger operators in each country are generally lower
than the average rates across all operators since the smallest operators often have a higher
termination rate. The rates for larger operators are likely to be more relevant to Optus.
The following table shows the average mobile termination rate for the largest two operators (by
subscribers) in each country in Australian currency.
Country Average Mobile Termination Rate: Top 2 Operators (Aust cpm)
Austria
Belgium
Denmark
Finland
France
Germany
Greece
Ireland
Italy
Luxembourg
Netherlands
Portugal
Spain
Sweden
United Kingdom
1
2006
16.28
22.68
18.88
12.57
15.91
18.03
25.65
18.32
19.52
21.19
16.89
19.68
22.43
11.63
14.91
2007
13.16
16.22
17.09
11.54
12.56
14.71
18.91
2008
11.65
12.97
14.69
16.32
18.77
13.82
18.43
19.95
9.87
14.58
14.20
14.85
10.75
8 year average exchange rate, sourced from RBA official historical rates.
17.13
14.14
PPP Exchange Rates
The following table and chart give Australian dollar MTRs, converted using PPP exchange rates.2
Country Average Mobile Termination Rate (Aust cpm)
Austria
Belgium
Denmark
Finland
France
Germany
Greece
Ireland
Italy
Luxembourg
Netherlands
Portugal
Spain
Sweden
United Kingdom
AUSTRALIA
2006
17.14
24.05
14.12
11.55
15.36
17.81
31.21
15.96
20.63
19.43
16.89
24.43
24.16
9.86
14.43
15.00
2007
13.93
17.28
12.71
10.07
12.22
14.54
23.18
2008
11.91
13.85
10.92
16.31
17.40
13.95
22.03
21.34
8.36
13.93
12.00
14.08
13.85
11.01
18.11
13.31
Mobile Termination Rates: European Jurisdictions
35.00
A$ cents per minute
30.00
25.00
2006
20.00
2007
15.00
2008
10.00
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2
PPP (purchasing power parity) exchange rates are widely used by international organisations as an alternative to
monetary exchange rates when making international economic comparisons. They are, in effect, “real” exchange rates,
based on a comparison of the relative purchasing power of each country’s currency. Purchasing power parities equate
the purchasing power of different currencies. This means that a given sum of money, when converted into different
currencies at the PPP rates, will buy the same basket of goods and services in all countries, thus eliminating differences
in retail price levels between countries.