MOBILE TELECOMS : IN-DEPTH EXAMINATION INTO FRENCH REGULATION.

The European Commission announced, on 13 April, its decision to carry out an in-depth examination of plans by the French telecoms regulator (ARCEP) to set higher mobile termination rates (MTRs) for three new mobile virtual network operators (MVNOs) - Free Mobile, Lycamobile and Omea Telecom.

MTRs are the rates mobile networks charge other networks to terminate subscribers' calls.

"The entrance of new operators ensures that the French mobile market is competitive and vibrant." However, imposing "higher mobile termination rates for new entrants only makes sense if this reflects real higher costs," commented Digital Agenda Commissioner Neelie Kroes.

The ARCEP, which has already set MTRs for existing mobile operators in France, proposes to set higher rates for a two-year period for the three new operators to compensate for the higher costs they incur as new entrants on the market. In its 2009 recommendation (1)on the regulatory treatment of fixed and mobile...