Ofcom proposes cuts to mobile termination rates

Ofcom is holding a Consultation on the wholesale mobile termination rates.

The current price controls end on 31st of March 2011 and Ofcom is proposing the following rates: -

2010/11 4.3 4.6
2011/12 2.5 2.5
2012/13 1.5 1.5
2013/14 0.9 0.9

Column one represents Vodafone O2/Orange/T-Mobile and column two represents H3G.

Other mobile network pricing is set on the basis of being fair and reasonable (i.e. this applies to Truphone, UK01 and other new entrants).

The mobile networks have seen the mobile termination rates slashed in recent years which is good news for consumers.

However this still doesn't address the mobile network operators setting retail rates that are unduly high (i.e. some of the new entrants may have a termination rate set by Ofcom of say 2.5p per minute, but the retail rate charged by a MNO is above 40p which prices the new entrant out the market).

The consultation closes on 23/06/10

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