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 Monday, December 01, 2008

­The European Commission, in a letter, has welcomed the French regulator's proposal to lower the wholesale rates charged by French mobile operators. The Commission also invited the regulator, ARCEP to keep up its efforts to set a target date by which they should equal the costs of an efficient operator in the next regulatory window that starts in 2011.

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The Commission endorsed the regulatory measures proposed by the French regulator ARCEP: a price control obligation requiring French mobile operators SFR and Orange France to charge a termination rate of €0.03 per minute from 1 July 2010. Bouygues' rate is to be set at €0.04 per minute by the same date. ARCEP`s overall approach is to reduce termination rates towards the long run incremental cost (LRIC) of an efficient operator resulting in symmetric rates which will eventually be in line with the Commission's forthcoming Recommendation on termination rates. ARCEP set the target efficient cost-based mobile termination rate between €0.01 and €0.02 per minute, to be eventually reached by all mobile operators.

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Source: Cellular News.