The Effect of Foreign Mobile Termination Rates on U.S. Carriers and Consumers (December 2013), presents the results of a study conducted by Cathy Hsu and Mark Uretsky, staff economists in the International Bureau, to quantify and assess the effect of foreign mobile termination rates on U.S. telephone companies (“U.S. carriers”) and consumers.  The FCC collected data from several large U.S. carriers on a voluntary basis for the period 2003-2010 in response to concerns initially raised by them and also by the Commission in two proceedings regarding the potential effect of foreign mobile termination rates on U.S. consumers.  See International Settlements Policy Reform; International Settlement Rates, IB Docket Nos. 02-324 & 96-261, First Report and Order, FCC 04-53, 19 FCC Rcd 5709 (2004).  See also Effect of Foreign Mobile Termination Rates on U.S. Customers, IB Docket No. 04-398, Notice of Inquiry, 19 FCC Rcd 21395 (2004).  IB Docket No. 04-398 was terminated by The Effect of Foreign Mobile Termination Rates On U.S. Customers, IB Docket No. 04-398, Order, DA 14-1490 (Int’l Bur. 2014).
Included with the report is the data set on which the study was based, aggregated to protect the confidentiality of the data filed by the reporting companies, as requested by them.  Also included is an appendix to the study, Comments on Directions for Future Research, by Jerry B. Duvall, Senior Advisor to the Bureau Chief for Economic Analysis, International Bureau.  The Appendix provides a theoretical perspective on the economics of mobile termination rates.

Over the last several years, the Commission has used the data contained in this report to inform itself of the international situation with respect to mobile termination rates and to influence foreign counterparts to take action to lower rates.  As documented in this report, many national regulators as well as the European Union have, in fact, taken action to reduce mobile termination rates to more cost-based levels. 

Under the 47 CFR section 43.62 traffic and revenue reporting requirements, which went into effect in 2015, U.S. service providers file annual settlement statistics separately for foreign fixed-line and mobile networks.  This information will effectively continue the reporting of route-specific mobile and fixed-line settlement data collected on a more limited basis in this report.

Date Last Updated or Reviewed: Mon, 02/23/2015
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