GSM termination fees to be reduced from June
Wednesday, January 26, 2005, 07:03
GSM service providers may have to reduce their termination fees on calls to their network as of June in line with today?s decision of the National Telecommunication Authority (NHH). The authority ruled that the difference between the termination fees of Hungary?s three cell phone companies cannot be higher than 20%, the decision takes effect on the 120th day from the date the new rule is officially announced. ?Termination fee? means the charge a mobile phone company requires other fixed-line and mobile service providers to pay on each call made by their clients to its network. Since July 2004, T-Mobile Rt has been charging a per-minute fee of Ft 37 in peak time and Ft 20.5 in standard rate time. Pannon GSM charges Ft 41 and 21, Vodafone Rt charges Ft 46.15 and Ft 30.15, respectively. NHH?s decision regulates termination fees for mobile-to-mobile calls in a market where they only fixed-to-mobile termination fees have been regulated so far. The criteria laid down in the rules stipulate that, when setting termination fees, GSM service providers cannot discriminate between calls depending on which provider?s network they come from. The fee must be proportionate to the costs of receiving calls, which are to be calculated using a method specified by NHH.