The European Commission has expressed serious doubts about the plans of the French telecoms regulator (ARCEP) to set higher mobile termination rates (MTRs) for Free Mobile, Lycamobile and Oméa Telécom. MTRs are the rates mobile networks charge other networks for delivering voice calls, and are ultimately included in the prices customers pay for calls. ARCEP has already fixed cost-based MTRs for existing mobile operators in France as from January 2013, in accordance with EU rules. ARCEP now proposes to set MTRs at a higher level to compensate these new mobile entrants for the prices they pay to use existing mobile networks and the claimed financial effects resulting from traffic imbalances. The Commission has serious doubts about ARCEP's justification of higher MTRs on the grounds that it is more expensive for new companies to provide call termination services. For these reasons, the proposal might not comply with EU telecoms rules.