On 30 November 2010, the German NRA Bundesnetzagentur ("BNetzA") published new termination rates for the four German mobile network operators. The mobile termination rates have been one of the major conflict areas of German telecommunications regulations for several years. The published new rates lie in the range 3.33 ct/min to 3.37 ct/min. This is a significant reduction in comparison to the previous rates of 6.59 ct/min. for T-Mobile and Vodafone respectively 7.14 ct/min for e-plus and O2. According to Matthias Kurth, President of the BNEtzA, this significant reduction is driven to a large extent by the strong increase in mobile network traffic volume.

The new termination rates are currently subject to German national consultation procedures as well as a subsequent notification to the European Commission. Until completion of these procedures, the new termination rates have been approved on an interim basis. A final decision is planned after completion of these procedures and expected for the middle to the end of the first quarter of 2011. Once enacted, the final decisions on mobile termination rates will apply retroactively from 1 December 2010 and will override the preliminary decisions taken.

For more information, please refer to BNetzA's press release dated 30 November 2010 at: www.bundesnetzagentur.de/cln_1931/SharedDocs/Pressemitteilungen/EN/2010/ 101130NewMobileTerminationRates.html?nn=48242