...and why Mobile Termination Rates need to fall
James Rosewell writes:
Due to growth in staff numbers my business (51Degrees.mobi) is in the process of moving offices. Coincidentally I'm also moving our home broadband. It’s not been a pleasant experience.
This got me thinking, because a few weeks ago on thefonecast.com we discussed why Ofcom isn’t treating Mobile Termination Rates (MTR) in the same way as fixed-line termination rates. The mobile industry justifies higher MTRs on the assumption that a mobile network costs more to run than a fixed-line network. It was certainly true when the fixed costs of running a mobile network had to be shared across a relatively small number of customers, even if they did pay a fortune for their contracts and terminals. Intuitively I'd say that’s just not true anymore.
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EE (formerly Everything Everywhere) has published its third quarter financial results for 2012.
Service revenue was down 3% year-on-year to £1.496 billion, although the company says this would have been a 3.1% increase without the effect of changes to mobile termination rate and roaming regulations.
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This week’s podcast from The Fonecast starts with a look at Barclays Pingit, the new UK mobile payment service that’ll let almost anyone send and receive money from a smartphone. We then move on to Ofcom’s plans to cut mobile termination rates before discussing camera technology, new handsets, patents, NFC tickets and plenty of other topics.
As always, you can listen to the programme on our website audio player, via iTunes, by using our RSS feed or by downloading the MP3. Alternatively, take advantage of the Android, iOS or webOS Stitcher Radio app and stream the podcast to your mobile phone.
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Categories: Handsets and manufacturers, Operating systems, Applications, News
Tags: opinion, payments, uk, barclays, ofcom, mtr, scalado, sony, sony ericsson, femtocell, apple, motorola, android, google, browser, advertising, opera, nfc, ticketing, panasonic, lg, zte
Barclays introduces person-to-person mobile money transfers to the UK, Ofcom gets the go-ahead to cut wholesale interconnection charges, a handful of new phones are announced ahead of Mobile World Congress... plus the rest of the week's big news.
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Last March, Ofcom published its plans for Wholesale Mobile Voice Call Termination charges; the inter-company ‘mobile termination rates’ paid when calls are connected from fixed-line phones to mobile phones. It set a decreasing scale of charges for UK network operators.
Everything Everywhere, BT, Hutchison 3G UK and Vodafone all appealed to the Competition Appeal Tribunal, arguing that the MTR changes unfairly favoured their competitors.
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