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Mobile termination rates decrease 30% since 2011; global average expected to continue to fall

Companies mentioned in this article: Telecommunications Management Group, Inc.

ARLINGTON, Va., June 23, 2014 /PRNewswire/ -- Telecommunications Management Group, Inc. (TMG) announces the release of its newest report, Mobile Termination Rate Update 2014. The report features mobile termination rate (MTR) information for 123 economies worldwide as well as MTR profiles beginning in 2005 for 30 economies around the world. The report is an update to TMG's three prior highly acclaimed mobile termination rate reports.

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The new report finds that in the 118 economies with MTRs the average global MTR was 4.3 U.S. cents in 2013, as compared to 6.1 U.S. cents in 2011 and 8.4 U.S. cents in 2009. Analyzing the markets for which historical data is available, TMG finds that MTRs have declined by 75 percent since 2005. MTRs have continued to fall at a pace that is in line with TMG's previous forecasts, and TMG believes that MTRs will continue to drop as a result of ongoing regulatory interventions that seek to align interconnection rates with costs, although these changes will differ in magnitude among the world's regions.

There is great divergence in MTRs between regions of the world. The Americas region, for example, has the highest average MTRs, at 6.2 U.S. cents per minute, or more than twice the 2.8 U.S. cents per minute average in the Middle East and North Africa region. TMG's research found that Sub-Saharan Africa had average MTRs similar to the global average, while the Middle East and North Africa, Europe and Asia-Pacific regions were lower than average. Similarly, there can be large differences between countries within a region. For example, in the Asia-Pacific region, MTRs range from 0.3 US cents to 10.1 US cents per minute. The report facilitates wholesale mobile interconnection rate benchmarking between countries by including MTRs in both U.S. dollars and purchasing power parity prices (which adjusts for differences in the level of income between nations). The report also identifies which countries do not use MTRs.

For ordering information, please visit: http://tmgtelecom.com/reports/mobile-termination-rate-update-2014.

About TMG

Telecommunications Management Group, Inc. (TMG), www.tmgtelecom.com, is a premier consulting firm dedicated to advising clients on telecommunications and information technology matters. Comprised of an experienced team of attorneys, economists, market analysts, engineers and financial experts with an in-depth knowledge of the ICT industry, TMG provides strategic, managerial, regulatory and technical advice to telecommunications entities, governments and international agencies.

For more information, please contact:

Mr. Jeff Bernstein
Email: jeff@tmgtelecom.com
Tel: +1.703.224.1501

SOURCE Telecommunications Management Group, Inc.