Session 7
Regional Seminar on Costs and Tariffs for Member Countries of the
Regional Group for Asia and Oceania (SG3RG-AO)
Activities of Mobile termination rates
and Mobile roaming in the framework
of ITU-T Study Group 3
27 April, 2010
Eriko Hondo
Rapporteur, ITU-T/SG3
KDDI Corporation
Contents
• Studies of
– Mobile termination rates
– Mobile roaming
•
•
•
•
Needs
Scope of work
Discussion
Progress
2
Mobile Termination rates 1
January 2005
A Rapporteur group on Mobile termination rates was
established
Two contributions from Malaysia and Japan
‹Malaysia: (Main Rapporteur)
“Study Group 3 is invited to consider preparing indicative target rates for
direct and indirect relations (settlement rates) for mobile terminated traffic.”
‹Japan: (Associate Rapporteur)
“…Study Group 3 needs to collect accurate and effective data and
information and to analyze the inputs in order to facilitate the application of
the cost-oriented settlement rates.”
Mobile Termination rates 2
Terms of Reference
1. To study and examine issues related to int’l mobile termination rates
…… in accordance with the existing ITU-T Recommendations D.140 and
D.93
2. To develop a questionnaire for collecting data and other relevant
information
3. To formulate the reporting format for the publication
4. Consideration should be given to establish a transparent process for this
study
5. The report should include the underlying differences between different
countries (… charging methodologies, national regulatory decisions,
interconnection rates …)
6. To review the results and prepare a further work plan
Mobile Termination rates 3
In the process of drafting the Terms of Reference,
9No words which mean target rates, benchmark, etc. are
included.
9ATT (the US) proposed to add data of national
interconnection rates in the review of the results of the
questionnaire.
9Some mobile operators were so nervous at the wordings
because they were worried about the influence of this study reduction of their interconnection charges.
9Many countries participated in the drafting and proposed
their own opinions. This movement is the first step for
creating a consensus from the ITU activities.
Mobile Termination rates 4
September 2005
Drafting Questionnaire on international mobile termination rates
Question A - International settlement rates
A1 - International settlement rates terminated in each Region
A2 - International Settlement Rates Terminated within
Respondent Country
Question B - National interconnection charges
Question C - Mobile and fixed termination rates
Question D - Other relevant information
TSB distributed the questionnaire in December 2005 to Member
states, ROA within Sector Members.
TSB kept the confidentiality and supported the work of the
Rapporteur group.
Mobile Termination rates 5
June 2006
Interim report of the questionnaire on the MTR was released
Results of Question A and B: (Completed)
A1 - International settlement rates terminated in each region
the average of proportion of weighted average: (All regions)
MTR : FTR = 3.78 : 1
TAS: 1.417:1
TAF: 1.51:1
TEUREM: 10.57:1
TAL: 3.36:1
Others: 2.157:1
A2 - International settlement rates terminated within respondent country
MTR : FTR = 1.53:1
B - National interconnection charges
the average local interconnection charge for:
fixed to fixed = around 0.016 SDR
fixed to mobile = around 0.086 SDR
Mobile Termination rates 6
Results of Question C and D: (further analysis is need.)
C – Mobile and fixed termination rates
Total fifty (50) responses, but non-uniform submissions.
AT&T: “The absence of analysis in Table C is already compensated by the results
in Table A and B, as it serves similar purpose.”
D – Other relevant information
Qualitative in nature, not possible to provide quantitative results.
TSB: “proposes to publish the compiled responses, excluding content pertaining to
price for spectrum allocation and other information specifically marked as
confidential.”
Vodafone: “proposed to link the information in Question D to Questions A to C.”
Telefonica: “The aggregate information in Question D may serve limited purpose.”
Mobile Termination rates 7
Contribution from Cuba:
“proposes that indicative rates be calculated for traffic terminating on mobile
networks and that those rates be published in a document that updates
indicative rates and teledensities by country, so that they receive the same
treatment as rates applicable to fixed networks.”
This proposal was included in the work of the MTR Rapporteur group.
Mobile Termination rates 8
March 2007
SG3 agreed:
a) To request TSB to produce some tabulations for the consideration of the
Rapporteur Group.
b) To request TSB to issue a new (third) questionnaire, with cover text
explaining the reasons of 1) issuing a third questionnaire, 2) changing of
some questions.
c) To request TSB to produce additional tabulations for the third
questionnaire.
d) To invite further contributions with respect to the matter of the indicative
rate, including information on methodologies used nationally to define
indicative rates, and regarding whether or not indicative rates could be
determined by SG3 on the basis of available data and an agreed
methodology.
Mobile Termination rates 9
October 2007
SG3 agreed with New Recommendation
-originally proposed by TAF Group
-consists of an indicative rate for international mobile termination and provides some
suggestions for consideration by national regulatory authorities.
Recommendation D.99 (Extracts)
3. Considerations for Administrations
If an Administration wishes to impose ceiling on international mobile termination
rates, then it should take into account all relevant factors which, in most cases,
would include the cost of building and maintaining the mobile network infrastructure.
Comparison of international mobile termination rates across countries reveals that
there are significant differences, and there is no simple explanation for those
differences.
When an Administration wishes to establish a basis for negotiation for international
mobile termination rate, it may consider the current international fixed termination
rate as an initial basis from which to start deliberations taking into account the
relevant provisions of ITU-T Recommendations D.93 and D.140.
Mobile Termination rates 10
October 2007
Tabulations of Questionnaires on International Mobile Termination
Rates
-just tabulations (TD27)
-an analysis and interpretation of the tabulations made by TSB (TD27 Addendum 1)
… the tabulations show that mobile termination rates are higher in the
TEUREM region than elsewhere, however, there is insufficient data to
allow any conclusions to be drawn regarding the reasons for the higher
rates in the TEUREM region.
TSB Councellor: “The above analysis was posted for discussion to the
MTR Rapporteur Group, but it has not been discussed or approved.”
Mobile Termination rates 11
Discussion in the SG3/WP2
Syria: there should be no further attempts to collect data and that it would be
appropriate to set an indicative rate as proposed by TAF.
Syria: a possible explanation of the observed higher mobile termination rates in
Europe was the cost of the 3G auctions.
Malaysia : drew attention to the fact that this issue is mentioned in the TAS report,
where it was stated that mobile termination rates appear to have become lower.
Indonesia: all relevant costs should be considered when discussing termination
rates.
The Chairman proposed that all these
documents be discussed in more depth by the
Rapporteur group.
Mobile Termination rates 12
Discussion in the Rapporteur Group
future face-face meeting be authorized just prior to the next SG3 meeting,
focussing on item 5 of the Terms of Reference, with the objective of better
understanding the reasons underlying the observed regional differences.
Mobile Termination rates 13
March 2008
The final report of MTR study, which contains the report of the
meeting took place just prior to SG3, was approved and the
meeting expressed its appreciation for the work carried out by the
Rapporteur.
-Description on the regulation and level of national mobile terminations
charges in aggregate and in individual European countries by the European
Commission (EC) and the European Regulators Group (ERG).
‡ National regulators in each EU country, except Bulgaria and Slovakia, had
required MTR charges to be cost oriented and set controls over the level of the
charges.
‡ National mobile termination charges have been reducing by about 10% each
year and that the average level in 2007 was just below 10 Euro cents per minute.
‡ These refer to national termination rates and so do not directly related to
international settlement rates.
Mobile Roaming 1
January 2009
A Rapporteur group on Mobile Roaming is established
Contribution from Australia
‹to study this issue as a priority and, in particular, to take account of recent studies
as well as the SG3’s work on related matters such as mobile termination rates.
‹Through such a study we would encourage members to report on research being
undertaken and market developments within their administration or region.
‹to consider best practice approaches for mobile roaming that seek to improve the
timeliness and transparency of billing and to reduce the prices for consumers as
well as the costs to mobile operators.
Rapporteurs:
Ms. Eriko Hondo (Japan)
Ms. Josephine Adou (Côte d’Ivoire)
Mr. Omar Al Rashdan (Jordan)
A nominee from Latin America
Mobile Roaming 3
September 2009
-Gathered recent studies on international mobile roaming charging
arrangements
z
z
z
z
z
z
z
EC Regulation
ERG Analysis
Report from Europe
Report from Australia
Report from FCC (the US)
Report from Africa
Report from South America
-Issued related proposals
„ Taxation of mobile roaming service (from Australia), which was discussed at
the ITR Expert Group at first.
„ Collection of information on mobile roaming charge and Setting guidelines of its
charge (from Korea)
Results are ….
Mobile Roaming 4
9Revise Terms of Reference
9Draft Questionnaire
(after the meeting)
The questionnaire was finalized and distributed to all Member States, Sector
Members, in November 2009.
Summary of the response has already released as a document of the next SG3
meeting.
Additional reports are collected.
z OCED Reports on International Mobile Roaming
z Paper from Ewan Sutherland (the UK)
Mobile Roaming 5
next SG3 meeting at
17-21 May 2010 at Soul, Korea
According to the Terms of Reference…
(Extract)
„ Present the findings of this study, including any updates to the May 2010
meeting of SG3.
„ Decide the next steps for this study based on the findings.
This study should be undertaken in close cooperation with the SG3 Regional
Groups and, if justified, with other regional groups and we invite them to
provide input against these Terms of Reference.