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Description
The ITU’s 1999
World Telecommunication Development Report forecasts that
revenue from mobile services will overtake revenues from fixed
line services around the year 2004. In fact, the number of
mobile subscribers has already overtaken the number of fixed
subscribers in many industrialized and developing
countries. But in
the rush towards what has been called the “mobile information
society”, the sector is facing a number of growing pains. Although an increasing
share of voice traffic is being routed from fixed to mobile
networks and vice-versa, the issue of establishing
rates and regulation for interconnection between these
networks is still a contentious one. Rates vary
considerably across ITU Member States. Commercial rates range
from zero in some countries to as much as US$ 0.62 per minute
in others. Even
in relatively liberalized economies, rates for mobile
interconnection are often well above costs. The European Union has
recently launched an investigation into the high termination
rates being charged by mobile operators.
Many countries, including India, Morocco and the UK, have
taken regulatory action to bring fixed-mobile interconnection
rates in line with costs. However, there is
little in the way of research or international benchmarking to
assist countries in their costing exercises. No consensus has been
reached on the costing methodology to be used. In many
developing countries, the lack of resources and regulatory
expertise can hinder efforts at cost-orientation.
Recent excitement over the launch of
mobile Internet services makes fair and open interconnection
an even more pressing issue. The viability of these new
services will depend not only on the interoperability of
standards but also on technically and economically sound
interconnection arrangements. Addressing the major
issues underlying fixed-mobile interconnection at an early
stage will assist regulators and industry alike in this
transition to an increasingly mobile world.
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