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MegaFon to reduce interconnection rates for small operators
Mobile operator MegaFon must make an offer to lower its interconnection rates for small mobile operators by November 25, the Federal Antimonopoly Service (FAS) said.

The FAS said that MegaFon had to offer the small operators the same tariff that had been offered by other major Russian mobile providers MTS and VimpelCom.

The FAS initiated an antimonopoly case against the three operators in August. The FAS found that the companies had agreed to an interconnection rate of 0.95 rubles per minute for incoming calls among themselves, while charging other operators 1.1 rubles per minute. The pricing violated the country's competition law.

In October, the regulator found the three companies guilty of violating antitrust legislation, but the case against VimpelCom and MTS was resolved as the two companies agreed to reduce the fee for small operators to 0.95 rubles per minute.

Without regulation, interconnection rates can be used as a means for larger operators to exert market power and make it difficult for smaller operators to compete effectively and make a profit. The actions of the FAS should enhance competition in Russia’s mobile sector.

Source: Prime-Tass - WDR/Intelecon Regulatory News

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