Latest Podcast



Featured Articles

Thursday, October 1, 2009

Termination rates are already falling - so why all the fuss?

Mark Bridge writes:

With over 100,000 people having signed its petition in four months, there’s no denying that the Terminate The Rate campaign is attracting supporters. And with promises including “BT and 3 are working together on a petition that will lower your phone bill by reducing the level of Mobile Termination Rates”, it’s easy to see why.

But what’s the point of all the campaigning - and has it really achieved anything?  Terminate The Rate – which is run by 3 UK – says mobile networks charge a Mobile Termination Rate (MTR) of around 4.7p per minute for connecting a call to another network. That’s a lot of money over the course of a year. But those networks also pay that 4.7p when calls are connected to them, which cancels out a fair bit of it. Now, I don’t doubt there are some profits in there. But, to be frank, I don’t see much real consumer benefit in cutting termination rates. It seems to me that any profits lost from MTRs would simply be generated from increased charges elsewhere. Even if new tariffs offered ‘more value’ they’d be likely to cost more. Regulators have even suggested that we could cut MTRs and then pay to receive calls. Do I hear the sound of a lead balloon going down?

And I’ll confess I’m suspicious of 3’s volte-face; arguing in favour of increased MTRs when it suited and then arguing against them when it didn’t get its way.

Okay, so none of us likes spending money when we don't see a benefit – but talking about “bill shock” and a “a secret tax on consumers” is more like tabloid rhetoric than an informative campaign.

And some of the campaign supporters seem to be sending confused messages, too. For example, the Plain English Campaign said “Consumers deserve the right to understand complex issues that affect them in the simplest possible terms and we support any organisation that strives to do this” – which seems to suggest it would just as happily support an increase in termination rates if the organisers had a ‘Crystal Mark’ on their literature. There’s also plenty of talk from organisations about supporting the campaign because it’ll reduce charges – although that's certainly not guaranteed.

I was pleased to see that Martin ‘Money Saving Expert’ Lewis was, like me, unconvinced by the campaign. He told us “We’ve decided not to back the Terminate the rate campaign for the time being. As the decision was in the balance we put it to our users and the majority weren’t in favour of doing so. This is an important issue and one to look at, though we’re not fully convinced a campaign run by a big mobile phone network which is in its own vested interest is the right way to go forward”. And that makes me wonder how many other organisations had also declined to join 3 and BT’s party.

Terminate The Rate plans to give its petition to Ofcom later this month. And then what?  Perhaps my biggest complaint about the campaign is that, even before it launched, the European Commission had told Ofcom and other European regulators to make sure MTRs reflected actual costs. And MTRs are already set to drop next year. Which suggests everything’s in hand. And in 2011, when the current charges are reviewed, we’ll probably see a decent-sized drop in MTRs... which would have happened regardless of any campaign.

Print
Author: The Fonecast
0 Comments
Rate this article:
No rating

Categories: OpinionNumber of views: 35377

Tags:

Leave a comment

This form collects your name, email, IP address and content so that we can keep track of the comments placed on the website. For more info check our Privacy Policy and Terms Of Use where you will get more info on where, how and why we store your data.
Add comment

Opinion Articles

How AI technology is transforming the smartphone experience

How AI technology is transforming the smartphone experience

From improved performance to personalized recommendations, AI is enhancing the functionality and usability of smartphones for users

By incorporating advanced algorithms and machine learning capabilities, AI can help to optimize a smartphone's performance, providing users with a faster, more efficient and user-friendly experience.
Author: The Fonecast
0 Comments
Article rating: No rating
Whatever happened to all my tech?

Whatever happened to all my tech?

Mark Bridge revisits his mobile technology reviews

Mark Bridge writes:

I've been taking a look back at the devices I've written about during the past few years. Some are still faithful companions, others... well, let's just say my faith was misplaced.
Author: The Fonecast
0 Comments
Article rating: No rating

Predictions for 2016: Network Function Virtualisation, 4G throttling and video calling

Mark Windle, head of marketing at OpenCloud, predicts that this year’s reduction in the number of traditional telecoms operators in some countries will provide an opportunity for other operators to innovate and capture market share in 2016.

He says next year will be a year of rapid change for telecoms… whether it’s MVNO disruption, competitive tariff pricing or simply defence from the ‘dark art’ of hacking.

Author: The Fonecast
0 Comments
Article rating: No rating
Kapture review: the audio-recording wristband

Kapture review: the audio-recording wristband

A 'recording watch' that links to your smartphone

Mark Bridge writes:

The most memorable moments in life often go unrecorded. You don't have your camera in your hands. Your finger is still hovering over the 'pause' button on your audio recorder. Or you were simply too busy experiencing whatever was happening. It's all about the one that got away.

That's where Kapture can help.

Author: The Fonecast
4 Comments
Article rating: 4.0
Making mobile websites work better

Making mobile websites work better

Device detection and responsive design explained

Mark Bridge writes:

James Rosewell shows me a colourful roll of paper that's the width of an iPhone but well over three metres long. When I look closer, I can see it's a printed copy of the Wall Street Journal's mobile website. That's a lot of scrolling to do... and a pretty unfriendly user experience for anyone reading the news online. Why does it work so badly?

Author: The Fonecast
1 Comments
Article rating: 4.0
RSS
1234567810Last

Recent Podcasts

The week's top mobile news stories: Vodafone expands, EE celebrates and Europe prepares

Podcast - 19th March 2014

We begin this week's programme by looking at Vodafone's acquisition plans in Spain before moving on to discuss universal mobile chargers and 4G roaming.

There's also time to talk about UK mobile coverage, EE's new customer tracking service, contactless transactions and a smartphone camera that can identify objects hidden behind something else.

Author: The Fonecast
0 Comments
Article rating: No rating

Johan Lodenius of MediaTek talks about wearable devices, smartphone evolution and the importance of driving costs down

Podcast - 13th March 2014

This year's Mobile World Congress was notable for the number of product launches by handset manufacturers. To get a better understanding of smartphone manufacturing, we spoke to Johan Lodenius of semiconductor company MediaTek.

He gave us a simple overview of how 'fabless' manufacturing works, discussed developments in smartphones and wearable devices, contemplated the end of the PC era and talked about the importance of driving costs down.

Author: The Fonecast
0 Comments
Article rating: No rating

Mobile payments, new smartphones, wearable devices, connected cars, CeBIT and David Cameron

Podcast - 12th March 2014

This week's programme opens with a quick look at David Cameron's commitment to 5G technology and the Internet of Things, which was made in a speech at CeBIT.

Iain and Mark then move on to talk about the other big mobile news headlines from the past few days, including the forthcoming Paym m-payment service, new HTC and LG smartphones, the growth of Chinese handset manufacturers, wearable devices, in-car connectivity and damaged iPhones.

Author: The Fonecast
0 Comments
Article rating: No rating

The rise of OTT messaging and the future of SMS: we talk to Stacy Adams of mBlox

Podcast - 7th March 2014

Messaging was very much on the agenda at Mobile World Congress this year, following Facebook's announcement that it was planning to acquire WhatsApp in a 19 billion dollar deal. So if the future for this type of internet-based 'over the top' messaging service looks good, what does this mean for SMS?

To find out more, we spoke to Stacy Adams of mBlox to learn what was happening in the messaging world, to find out how SMS is being integrated with mobile apps - and to discover some of the other ways SMS was being used by businesses today.

Author: The Fonecast
0 Comments
Article rating: No rating

We talk about 4G LTE coverage and device sensors with OpenSignal at Mobile World Congress

Podcast - 6th March 2014

Even at Mobile World Congress, the relevance of the mobile network operator can sometimes be forgotten. So for a different perspective on this year's event, we spoke to Samuel Johnston from British mobile crowd-sourcing firm OpenSignal.

Samuel discussed the announcements from MWC14 and OpenSignal's latest report into 4G LTE coverage around the world, as well as giving us an exclusive insight into OpenSignal's next research subject.

Author: The Fonecast
0 Comments
Article rating: No rating
RSS
First567810121314Last

Follow thefonecast.com

Twitter @TheFonecast RSS podcast feed
Find us on Facebook Subscribe free via iTunes

Archive Calendar

«March 2024»
MonTueWedThuFriSatSun
26272829123
45678910
11121314151617
18192021222324
25262728293031
1234567

Archive

Terms Of Use | Privacy Statement