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Mobile Termination Rates Down by Nearly a Third since 2011

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The average global mobile termination rate (MTR) has fallen to US$0.043 in 2013, compared to a global average of US$0.084 in 2009, according to analysis of 118 countries by Telecommunications Management Group.

Analyzing the markets for which historical data is available, TMG finds that MTRs have declined by 75 percent since 2005.

MTRs have continued to fall at a pace that is in line with TMG's previous forecasts, and TMG believes that MTRs will continue to drop as a result of ongoing regulatory interventions that seek to align interconnection rates with costs, although these changes will differ in magnitude among the world's regions.

There is great divergence in MTRs between regions of the world.

The Americas region, for example, has the highest average MTRs, at 6.2 U.S. cents per minute, or more than twice the 2.8 U.S. cents per minute average in the Middle East and North Africa region.

TMG's research found that Sub-Saharan Africa had average MTRs similar to the global average, while the Middle East and North Africa, Europe and Asia-Pacific regions were lower than average.

Similarly, there can be large differences between countries within a region. For example, in the Asia-Pacific region, MTRs range from 0.3 US cents to 10.1 US cents per minute. The report facilitates wholesale mobile interconnection rate benchmarking between countries by including MTRs in both U.S. dollars and purchasing power parity prices (which adjusts for differences in the level of income between nations).

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Tags: mobile termination rate  mtr