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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.

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Opinion Articles

The impact of iOS 7 on mobile app developers

The impact of iOS 7 on mobile app developers

Anton Faulconbridge writes:

It’s the latest tech update that everyone is talking about; for good or for bad, iOS7 is here and it’s something that all mobile app developers need to take into consideration. So, how have these changes to Apple’s system had an impact on third party apps?

Author: The Fonecast
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It’s not your fault, so why wait for your mobile phone?

David Heled writes:

The dependency on mobile phones is at an all-time high. Used for everything from the weekly grocery shop to monitoring heart rate, it’s no underestimation to say that we would be lost without our mobile phones. So when it takes days for your phone to be repaired, it has a considerable impact on your normal daily life.

Author: The Fonecast
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How ring-back tones could transform the way we use our mobile phones

Interview with Florent Stroppa of OnMobile

Mark Bridge writes:

Ring-back tones offer consumers yet another way to customise their mobile phone service. Yet despite this – and the revenue opportunities they provide – many mobile network operators don’t offer them.

Recently I spoke to Florent Stroppa, General Manager Europe for value-added service specialist OnMobile, to find out why the UK doesn’t really seem to be bothered about ring-back tones… and whether the next-generation of ring-back services will change this.

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Last week at The Fonecast: 7th October 2013

Compare and contrast

Mark Bridge writes:

Talk about a difference. In preliminary results last week, HTC announced its first-ever quarterly loss while Samsung revealed record quarterly profits.

Curiously, many of the week’s other news stories also had a companion headline to provide a contrast.

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Last week at The Fonecast: 30th September 2013

Changes revealed, charges concealed

Mark Bridge writes:

Things didn’t look so bad in the mobile industry last week. After the shock of BlackBerry’s job losses and restructuring, it seemed as though the saga could be reaching a conclusion. On Monday shareholder Fairfax Financial announced a bid to buy the company. BlackBerry’s board of directors has approved the terms of the agreement, although it’s still able to consider alternative proposals as well.

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A month of mobile: O2 counts on 3, Microsoft counts to 10 and Apple counts its profits

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We're back with a month of mobile industry news, including takeover talks and takeover rumours. O2 and Three are said to be discussing a merger... but is there any truth in the suggestions that BlackBerry could be up for grabs?

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