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http://abload.de/img/mtr-chg6ikk.png data from January 2014, source: http://berec.europa.eu/eng/document_...shot-as-_0.pdf I don't know what Toggle pays to Swisscom for termination of inbound calls but it will probably be more than what they earn from the termination rates in most Toggle countries. So when being called e.g. on your French (€ 0.008/min), Danish (€ 0.00896) or British (€ 0.01009) number every minute must be a loss for them. The tariffs in Switzerland are only viable as long as the majority of outbound calls goes to destinations with lower termination rates, so they cannot be interested in attracting Swiss customers that would only use the SIM for domestic calls. I think Lycamoble intentionally do not market Toggle too actively as they would not only cannibalize their MNO partners' customer bases but also their own. They are targeting very cost-aware and tech-savvy customers that will find Toggle by themselves. The possibility to change callerIDs was promised a year and a half ago but as so many promises this feature never became reality. |
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As far as I understand, full MVNOs buy airtime from the MNOs at a very discounted price. However they have to make a huge investment in the equipment in order to interconnect directly to the mobile network, bypassing the termination of the MNO. The termination is done on their own by the full MVNO or by their technical subcontractor.
So Toggle (Lyca UK) would terminate its calls on the Lyca Swiss Network at the price they agree on, and Lyca Swiss would forward the call to Swisscom Network at airtime price, not at the high Swisscom termination rate. Even if Lyca Swiss would charge the official termination rate to Toggle, that money stays in the "family". |
The rates at which MVNOs buy airtime from MNOs cannot be that much discounted for the following simple reason: Regulatory authorities set mobile termination rates based on an assessment of Capex and Opex involved in the deployment and operation of mobile networks. The principle is that termination rates should cover the costs of building and maintaining mobile networks plus financing costs and a small profit. The highest costs of a mobile network lie in the radio access network (basicly the towers and all the fibre and microwave links to the core network), so the core network components which a full MVNO has to build by himself make up a relatively small part of the total costs.
Now if an MNO sold airtime at rates too much below the MTR they would prompt the regulator to step in and lower the MTR as this would imply the costs of the RAN are lower than assessed by the regulator before. So MNOs must be very careful when selling airtime to MVNOs as they risk their own MTR to be cut. |
Upon arrival in Moscow yesterday toggle send me this confusing text:
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