The European Commission has praised the steps being taken by French regulator, ARCEP (Autorité de Régulation des Communications Electroniques et des Postes), to stop the great European mobile phone rip-off. ARCEP wants to lower the wholesale rates charged by French mobile operators to the costs of an efficient operator. ARCEP says it wants to eliminate price distortions between phone operators in France and to lower the prices that people pay for mobile phone calls.
Viviane Reding, European Commissioner, says:
“I strongly welcome ARCEP’s proposal, as I am convinced that truly cost oriented termination rates will be of great benefit to consumers. Not only will it make for more affordable calls to all networks alike, it will also, once all operators in France – mobile or fixed – compete on a level playing field, foster investment and innovation. At this stage, ARCEP’s approach clearly represents best European practice. The French regulator is making very important efforts to bring mobile regulation in line with the forthcoming Commission Recommendation on the regulatory treatment of termination rates.”
Neelie Kroes, EU Competition Commissioner agreed:
“ARCEP’s approach will boost competition in the French mobile phone market. I am sure that French consumers will benefit from ARCEP’s initiative and will in the near future have to pay less for their calls. Mobile phone companies, whether large or small, should finally be in a position to offer calls to all networks at similarly attractive prices. Furthermore, calls from fixed lines to mobile phones can also become much cheaper.”
ARCEP’s proposal: requiring French mobile operators SFR and Orange France to charge a termination rate of €0.03 per minute from 1 July 2010. Bouygues’ rate is to be set at €0.04 per minute by the same date. ARCEP`s overall approach is to reduce termination rates towards the long run incremental cost (LRIC) of an efficient operator resulting in symmetric rates which will eventually be in line with the Commission’s forthcoming Recommendation on termination rates. ARCEP set the target efficient cost-based mobile termination rate between €0.01 and €0.02 per minute, to be eventually reached by all mobile operators. (excerpt from EU press release).
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