Latest Podcast



Featured Articles

Ofcom says mobile contracts should ditch inflation-related price rises

Ofcom says mobile contracts should ditch inflation-related price rises

UK telecoms regulator Ofcom wants to ban inflation-related rises in phone and broadband contracts. Instead, it says any potential mid-contract price rises should be set out in pounds and pence.
Author: The Fonecast
0 Comments
Article rating: No rating

Global smartphone market is set for recovery, says new forecast

A new forecast from research specialists Canalys shows the smartphone market is set to recover next year. Worldwide shipments declined by 12% last year but that decline is expected to slow to 5% this year.
Author: The Fonecast
0 Comments
Article rating: No rating
Vodafone and Three plan to merge their UK businesses

Vodafone and Three plan to merge their UK businesses

New Hutchison/Vodafone network would be biggest UK operator

Vodafone Group plc and CK Hutchison Group Telecom Holdings Limited have agreed to combine their UK telecommunication businesses, respectively Vodafone UK and Three UK. The merger will create a large new network operator to compete with Virgin Media O2 and EE.
Author: The Fonecast
0 Comments
Article rating: No rating

UK mobile payment service Paym to close in March 2023

UK mobile payment service Paym will close on 7th March 2023. The service, which allowed users to make and receive payments using their mobile phone numbers, was launched in 2014.
Author: The Fonecast
0 Comments
Article rating: No rating
Qualcomm legal action moves forward in the UK

Qualcomm legal action moves forward in the UK

Which? seeks payout for Samsung and Apple smartphone owners

Consumer protection organisation Which? has been given permission by the UK's Competition Appeal Tribunal to represent Apple and Samsung smartphone buyers in a legal case against chip manufacturer Qualcomm.
Author: The Fonecast
0 Comments
Article rating: No rating
RSS

Opinion 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: 35726

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

Recent Podcasts

Mobile World Congress, manufacturers, mergers and much more

Podcast - 5th March 2014

This week's programme begins with some of the biggest news stories that came out of Mobile World Congress.

Iain, James and Mark then move on to the other headlines from the past few days, including Boeing's secret agent smartphone, Apple's plans for mobile in-car entertainment, a new structure for Telefonica and new technology for mobile payments.

Author: The Fonecast
0 Comments
Article rating: No rating

Voice-enabled mCommerce with Tony Ballardie of Capito Systems

Podcast - 28th February 2014

London-based Capito Systems won a place on this year's Smart UK Project shortlist, guaranteeing them entry to Mobile World Congress 2014. And when they arrived, they won the international Barca Starta competition as well.

In this podcast we talk to CEO Tony Ballardie about the company’s 'natural language' voice control, which can be integrated into almost any mCommerce application... from gambling to ticket purchases.

Author: The Fonecast
0 Comments
Article rating: No rating

Dr Kevin Curran talks about the future of mobile technology

Podcast - 27th February 2014

Dr Kevin Curran, Reader in Computer Science at the University of Ulster, joined us during Mobile World Congress to offer his well-informed opinion about trends in mobile technology.

We talked about a wide range of topics, including battery life, disposable tablets, wearables, m-health, 4G fragmentation, connected furniture, M2M security, the rise of video and the IEEE.

Author: The Fonecast
0 Comments
Article rating: No rating

Mobile World Congress 2014: an introduction

Podcast - 25th February 2014

James Rosewell and Mark Bridge report from Mobile World Congress 2014 in Barcelona.

In this podcast they talk about all the major mobile manufacturer announcements, including Nokia's new Android-based phones and Sony's newest high-spec devices.

Author: The Fonecast
0 Comments
Article rating: No rating

James Corden at the Global Mobile Awards

Podcast - 25th February 2014

One of the highlights of Mobile World Congress is the Global Mobile Awards - and this year the event was hosted by James Corden: actor, comedian, TV presenter and one-time promoter of Windows Phone.

Here's how he introduced the ceremony, with jokes about Facebook, BlackBerry, Steve Jobs and the gestures required to control an iPhone.

Author: The Fonecast
0 Comments
Article rating: No rating
RSS
First678911131415Last

Follow thefonecast.com

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

Archive Calendar

«May 2024»
MonTueWedThuFriSatSun
293012345
6789101112
13141516171819
20212223242526
272829303112
3456789

Archive

Terms Of Use | Privacy Statement