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 Thursday, 23 September 2010
Swisscom is further reducing its mobile termination charges starting 1 October, when they will decrease from CHF 0.14 to CHF 0.08 per minute. From the beginning of 2011, the rate will fall further to CHF 0.07 per minute. Swisscom has also reached an agreement with fixed network operators VTX and Verizon Business and with mobile operators Sunrise and Orange Switzerland. Swisscom started negotiating with the operators following a complaint filed by VTX with the Federal Communications Commission (ComCom) in February.
Sunrise and Orange are also reducing their charges from CHF 0.17 to CHF 0.10 per 1 October and to CHF 0.0875 per minute as of 1 January 2011. Following the reduction in MTA charges, Swisscom will also cut prices for residential and business customers. The future prices are currently being worked out. Lowering the MTA charges will reduce Swisscom's annual revenue by around CHF 80 million. Because the fees charged by other mobile providers will also decrease, it will have virtually no impact on EBITDA.
Swisscom's financial outlook for fiscal year 2010 remains unchanged. Sunrise expects a negative effect from the MTA reduction on its profits, but said it will continue to offer low minute fees to its customers. Orange expects that this reduction in the mobile termination rates will now be reflected in fixed network operators' tariffs for calls to mobile networks, but would not provide information about possible effects on its profits and its own minute fees.
Source: TelecomPaper