05/04/2010

UK MNOs moan about MTR reductions, apart from 3

As expected the big 4 UK mobile network operators are complaining about Ofcom's plans to reduce mobile termination rates to 0.5p per minute by March 2015.

The only operator who is welcoming the cuts is 3 (or Hutchison 3G to be exact). It makes sense for them as they're the smallest UK operator so their users are making more outbound calls to other networks than inbound, which means they're paying out to other networks. Any reduction in call costs to other networks therefore reduces their costs. They also say they'll pass on cuts to their users.

The MNOs are said to have made around €5.3bn from termination fees in 2008.

Vodafone have said "A cut of this magnitude deters future investment, makes it less likely that the UK would continue to lead in mobile communications and was at odds with the government's vision of a digital Britain." Orange say "Handsets may no longer be subsidised, and consumers may have to pay to receive calls."

Ofcom have been at odds with the MNOs on other changes as well such as Mobile Number Porting (Ofcom wanted sub 1 hour porting, the MNO's took Ofcom to court, and now Ofocm as asking for sub 24hour porting).
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