According to Business
News Americas, asymmetric regulatory measures have been implemented to curb
the dominance of Colombia's largest mobile operator, Claro.
Carlos Pablo Marquez, a director for telecommunications
regulator CRC, said that the regulatory initiative includes a measure to
establish asymmetric interconnection rates, where other operators will pay
lower fees to terminate calls on Claro's network. These benefits are expected
to be transferred to mobile users either through lower tariffs or investment in
new infrastructure.
A second measure prohibits Claro from
charging differential on-net and off-net rates. Other operators are still allowed
to charge different rates for on-net and off-net calls, but the market conditions
have prevented them from doing so, Marquez added. It is hoped that the
regulations will lead to decreased tariffs from all operators. The new
regulations will be in effect for two years, but could be extended depending on
market conditions.
According to Marquez, there are no
regulations prohibiting market dominance, but the CRC is concerned about
Claro's potential to abuse its market position following a number of ongoing investigations
of the operator by trade regulator SIC. The new rules were expected before the
end of 2012, but were delayed as Claro filed an appeal and waited for the maximum
period allowable to recognize the measures.
A major demand of other operators was for measures
to be taken against Claro before the release of bidding rules for the 4G
spectrum auction.
Intelecon comment: Colombia's new asymmetric
interconnection rates represent an effective tariff structure that can be
adopted by a regulatory authority for a variety of reasons. For instance,
asymmetric charges for rural areas have been explored in depth by Intelecon's
Andrew Dymond in a February 2004 World Bank Working Paper, "Telecommunication
Challenges in Developing Countries: Asymmetric Interconnection Charges for
Rural Areas." The paper investigates an approach to rural
telecom investment that bridges much of the rural access gap by revising the
interconnection regime, such that operators serving high cost areas would
receive higher termination fees. This rural asymmetric regime relies on geographically
de-averaged termination charges to reflect cost differences between urban and
rural networks.