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'MCA sets rules for wholesale mobile voice call termination'
[November 17, 2009]

'MCA sets rules for wholesale mobile voice call termination'


Nov 17, 2009 (DMEUROPE via COMTEX) -- Malta's regulator MCA has made its final decision on the market for wholesale mobile voice call termination, in accordance with the EU regulatory framework of electronic communications networks and services. In the second round market review for mobile termination services, the MCA concluded that there was no good substitute for termination services on mobile networks. The MCA's decision published in October 2008 specified that the relevant product market consisted of mobile call termination as supplied by a particular MNO, and that each MNO enjoyed monopoly power in this market. Two separate markets for mobile termination were identified, namely wholesale voice call termination provided by Vodafone Malta and by Go Mobile. The MCA designated both Vodafone and Go Mobile with significant market power (SMP) on the wholesale markets for the termination of voice calls on their individual networks. The MCA identified three main factors that could distort competition, namely excessive pricing, price discrimination, and denial to interconnect. In this regard, the MCA imposed on both network operators a number of regulatory obligations including access, non-discrimination, transparency, and accounting separation. The mechanism outlined in that decision for regulating mobile termination rates (MTRs) is a pegging mechanism with the average percentage change in MTRs of the EU 27 countries. This mechanism replaces the glide path. In relation to wholesale voice call termination on mobile networks the MCA has identified three relevant markets in accordance with competition law principles, namely wholesale voice call termination provided by Vodafone Malta, by Go Mobile and by Melita Mobile. The regulator says it is necessary to impose obligations on all network operators. These include access to/and use of specific facilities; non-discrimination; transparency; accounting separation; and price control and cost accounting.

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