Denmark Asked to Lower Mobile Termination Rates for 3G Operator

­The European Commission has written to the Danish telecoms regulator asking it to abolish the difference in mobile termination rates between the incumbent operators and the new 3G entrant, Hi3G. The regulator, NITA is proposing to reduce the MTRs from 2010 to 0.43 DKK/min for TDC, Telenor and TeliaSonera, but at a higher rate of 0.51 DKK/min for H3iG.

The revised termination rates will only be applicable as of 1st May 2010, whereas the current maximum rates, respectively 0.54 DKK/min for the three main operators and 0.74 DKK/min for Hi3G, will still apply for the period 1st January 2010 - 30 April 2010.

The Commission has commented on the fact that NITA allows Hi3G to charge higher - asymmetric- termination rates than the other mobile phone companies. Whilst acknowledging the greater reduction imposed on Hi3G's MTRs compared to other operators as well as NITA's intention to phase out the asymmetry in the next price decision, the Commission stressed that asymmetric rates may not remain in force for in general for more than four years following market entry, unless justified by objective reasons outside the control of the operator concerned.

It has urged the regulator to bring down the MTRs which Hi3G is allowed to charge to a level which reflects the cost of an efficient operator as quickly as possible unless it finds any objective reason justifying higher rates.

Under EU law, the Danish regulator is required to take utmost account of the Commission's comments before adopting its final measure.

Hi3G Access has a 3G license in Denmark and Sweden and is owned by Hutchison Whampoa (60%) and Investor AB (40%).

Posted to the site on 30th August 2009