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: 37093

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

Podcast - 1st December 2010

There's something of a retail focus in this week's mobile industry headlines, with joint-branded stores, mobile shopping, subsidised iPads and a stand-alone Tesco Phone Shop all being discussed. There's also talk about Symbian, Windows Phone 7 and angels with mobile phones.

Author: The Fonecast
0 Comments
Article rating: No rating

Podcast - 24th November 2010

The team looks at the UK's latest mobile industry headlines, from mobile money to apps, fraud, network quality, partnerships and advertising. There's also an interview with BroadSoft's vice president of Marketing about the company's move into mobile and its plans for the future.

Author: The Fonecast
0 Comments
Article rating: No rating

Podcast - 17th November 2010

This week's podcast includes more big news from Facebook, the introduction of IPv6, network sharing, call recording, fraud, legal action and an unusual upgrade offer. In addition, James Rosewell talks to Sophia Salenius, CEO of mHealth provider RegPoint, to learn more about this wide-ranging subject.

Author: The Fonecast
0 Comments
Article rating: No rating

Podcast - 10th November 2010

Dr Peter Gradwell talks about his company's new virtual mobile network, which puts fixed-line numbers on mobile phones. And, as usual, there's a look at the week's other industry headlines - including big stories from Nokia, Symbian and Facebook.

Author: The Fonecast
0 Comments
Article rating: No rating

Podcast - 3rd November 2010

In this week's podcast we discuss protests at Vodafone stores, Apple's appearance in the 'top five' manufacturer list, new legal action and an underground WiFi trial. We also talk to MoBank co-founder Steve Townend about the changes his business has seen since launching last year.

Author: The Fonecast
0 Comments
Article rating: No rating
RSS
First5960616264666768Last

Follow thefonecast.com

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

Archive Calendar

«September 2024»
MonTueWedThuFriSatSun
2627282930311
2345678
9101112131415
16171819202122
23242526272829
30123456

Archive

Terms Of Use | Privacy Statement