Ofcom published a statement that the Mobile Network Operators (MNOs) would have their mobile termination rates reduced from April 1st.
Everything Everywhere, O2 and Vodafone will have their current rate of 4.18p per minute reduced to 2.66p per minute on the 1st of April, while 3 (3UK) will have their rate reduced from 4.48p per minute to the 2.66p per minute rate. Next year the rate for all 4 MNOs will drop to 2.66p per minute then 1.70ppm, 1.08ppm and by 2015 0.69ppm.
This should be reflected in call charges by the MNOs and fixed line operators such as BT.
This doesn't affect data charges which the MNOs can still charge a premium for (though Ofcom will surely cap these too, especially for roaming customers).
This is in-line with European policy as the EU Commission expects mobile termination rates to be between 1.5 and 3c by 2015.
Showing posts with label mobile termination rates. Show all posts
Showing posts with label mobile termination rates. Show all posts
2010/04/05
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).
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).
2010/04/01
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
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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