25 June 2004

According to the Yankee Group's new Global Wireless Interconnect Regulatory Dashboard, national regulators across the globe are applying significantly varied approaches to the regulation of operator obligations and wireless interconnection rate setting.

"Wireless interconnection issues now dominate both regulatory agendas and industry lobbying efforts around the world," says Dianne Northfield, Global Regulatory Strategies program manager.

"Interconnection between wireless operators, or between wireless and fixed network operators, is central to the development of competitive mobile markets. Regulators are dictating requirements on operator agreements that were previously commercially negotiated. This creates enormous operator anxiety about operational and cost implications of different interconnection carrier compensation models."

Significant activity is occurring across Europe as regulators focus on curbing high and non-cost-based mobile call termination charges by declaring monopolies in mobile call termination markets and applying rate regulation, Northfield says.

"A lack of effective wireless interconnection arrangements is also proving to be a major issue and impediment to effective competition in many developing nations," she adds.