National Communications Commission (NCC) approves a reduction of the upper limit of mobile termination rates (MTRs), a decrease of approximately 19%

The National Communications Commission (NCC) has announced during its 1128th Commission Meeting held on the 17th of July that the mobile termination rates (MTRs) for the period from January 1, 2025, to December 31, 2028, will be gradually reduced from the current rate of NT$0.407 per minute to NT$0.330 per minute, marking a decrease of approximately nineteen percent.

The NCC explained that the MTR is the fee paid by one telecommunications network operator to another when their users communicate with each other across different networks. This rate is a crucial intermediate cost that operators must consider when setting retail prices for voice services. If an operator sets an excessively high MTR, it could force interconnected operators to face uncompetitive pressures when setting their retail prices, ultimately affecting consumer interests. Many benchmark countries internationally regulate MTRs based on cost principles, aiming to guide operators to continually invest in the latest and most cost-efficient networks to provide higher quality, more diverse, and more innovative services. This aligns with the goals of "guiding industrial technological advancement," "promoting competition among operators," and "protecting consumer rights."

The NCC stated that the MTR is reviewed every four years in accordance with Article 16, Paragraph 2 of the Regulations Governing Interconnection Involving Significant Market Power. The new rates will be scaled down over four annual reductions: NT$0.386, NT$0.366, NT$0.348, and finally NT$0.330 per minute. These new rates are scheduled to be implemented from January 1, 2025, and will remain in effect until December 31, 2028.