{"id":15265,"date":"2024-02-23T12:43:13","date_gmt":"2024-02-23T12:43:13","guid":{"rendered":"http:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/?p=15265"},"modified":"2025-10-17T12:34:59","modified_gmt":"2025-10-17T11:34:59","slug":"mobile-termination-rates","status":"publish","type":"post","link":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/business-environment\/mobile-termination-rates\/","title":{"rendered":"Mobile termination rates"},"content":{"rendered":"<div class=\"mph_background mph_column left\"><h3>Background<\/h3>\n<p class=\"p1\">Mobile termination rates (MTRs) are the fees charged by mobile operators to connect a phone call originating from a different network. Setting regulated MTRs continues to be a focus of regulators in both high- and low-income countries, and many different approaches have been developed to calculate appropriate termination charges.<\/p>\n<p class=\"p3\">Regulators have generally concluded that the provision of call termination services on an individual mobile network is, in effect, a monopoly. Therefore, with each mobile operator enjoying significant market power, regulators have developed various regulations and the most notable is the requirement to set cost-oriented prices for call termination.<\/p>\n<h3>Debate<\/h3>\n<p><em>How should an appropriate regulated rate for call termination be calculated?<\/em><\/p>\n<p><em>Is the drive towards ever-lower mobile termination rates a productive and appropriate activity for regulators?<\/em><\/p>\n<p><em>Once termination rates have fallen below a certain threshold, is continued regulation productive?<\/em><\/p>\n<p><em>What is the long-term role of regulated termination rates in an all-IP environment?<\/em><\/p>\n<p>\n<\/div><br \/><div class=\"mph_background mph_column right\"><\/p>\n<h3>Industry position<\/h3>\n<p class=\"p1\">Regulated mobile termination rates should accurately reflect the costs of providing termination services.<\/p>\n<p class=\"p1\">Evidence suggests that reductions in MTRs are not beneficial after a certain point. The setting of regulated MTRs is complex and requires a detailed cost analysis, as well as careful consideration of its impact on consumer prices and, more broadly, on competition.<\/p>\n<p class=\"p1\">MTRs are wholesale rates, regulated in many countries where a schedule of annual rate changes has been established and factored into mobile operators\u2019 business models. Unsignalled, unanticipated alterations to these rates have a negative impact on investor confidence.<\/p>\n<p class=\"p1\">The GSMA believes the setting of MTRs is best done at a national level where local market differences can be properly reflected in the cost analysis. Therefore, extraterritorial intervention is not appropriate.<\/p>\n<p>\n<\/div><\/p>\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","footnotes":""},"categories":[1149],"tags":[],"featured_image_url":false,"_links":{"self":[{"href":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/wp-json\/wp\/v2\/posts\/15265"}],"collection":[{"href":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/wp-json\/wp\/v2\/comments?post=15265"}],"version-history":[{"count":19,"href":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/wp-json\/wp\/v2\/posts\/15265\/revisions"}],"predecessor-version":[{"id":22251,"href":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/wp-json\/wp\/v2\/posts\/15265\/revisions\/22251"}],"wp:attachment":[{"href":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/wp-json\/wp\/v2\/media?parent=15265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/wp-json\/wp\/v2\/categories?post=15265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gsma.com\/solutions-and-impact\/connectivity-for-good\/public-policy\/mobile-policy-handbook\/wp-json\/wp\/v2\/tags?post=15265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}