Further Developments In The Mobile Termination Rates Saga As ComReg Publishes Its Proposed Cost Model

Author:Ms Helen Kelly

Readers of our previous eZines will be aware of the ongoing saga of the appropriate price control obligation for MTRs for the six Irish mobile service providers designed with significant market power (SMP).  In late 2012, ComReg proposed the use of a benchmarking approach - based on practices in seven other EU Member States which employed a bottom-up Long Run Incremental Cost (LRIC) methodology - to set MTRs for operators designated as having SMP in the market for mobile voice call termination.  Vodafone challenged ComReg's decision D12/12 in the High Court, and Cooke J found against ComReg in respect of ComReg's use of benchmarking.  Accordingly, ComReg was forced to go back to the drawing board and build a cost model to determine appropriate maximum MTRs for the six Irish mobile operators concerned.  Cooke J however postponed any ruling on Vodafone's challenge to the validity of the use of pure LRIC as the appropriate cost model.  Instead, Cooke J left the door open for an appeal, stating that he intended to wait until ComReg had built its cost model before reaching a decision as to its suitability in the market.  In the meantime, ComReg appealed the part of the High Court's decision which found in favour of Vodafone to the Supreme Court.  However, it may take many years before the appeal is heard by the Supreme Court.  ComReg has now issued a consultation setting out the parameters for its BU 'pure' LRIC cost model. The consultation is accompanied by a report, prepared by Deloitte &amp...

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