America Movil’s Mexican unit has reportedly agreed to lower the interconnection costs with four operators. Interconnection cost is the charge levied by network operators on other service providers to recover the costs of the interconnection facilities (including the hardware and software for routing, signalling, and other basic service functions) provided by the network operators.
According to reports, telecom regulatory authority, Cofetel, had asked America Movil’s Telecel unit to reduce the charges in an attempt to improve the competition in the mobile phone market. As per sources, Telecel is expected to reduce the interconnection costs progressively to US$ 0.026 in 2012, US$ 0.024 in 2013 and US$ 0.022 in 2014 from US$ 0.028.
Reports suggest that the regulator has said that the deal includes traffic with NII Holdings Inc’s Mexican unit, Nextel Mexico; America Movil’s fixed-line affiliate Telefonos de Mexico and Marcatel.
