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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

Last week at The Fonecast: 24th June 2013

More of the same

Mark Bridge writes:

Another week, another couple of product announcements from Samsung. There appears to be no stopping them, despite a recent drop in the company’s share price.

This time it’s a couple of tablets – one of which runs both Android and Windows 8 – and a 20 megapixel camera that’s got a 4G-enabled Android device built in.

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Last week at The Fonecast: 17th June 2013

Making the network truly mobile

Mark Bridge writes:

The telecommunications industry was making plenty of headlines last week – but much of it wasn’t particularly upbeat.

The debate about privacy and security continued in the wake of allegations about US agents intercepting internet traffic. Meanwhile, Nokia prepared to make its last Symbian smartphones and Tradedoubler warned that mobile devices were having a negative effect on high-street consumer loyalty.

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How to shield from internet snooping

George Putic of voanews.com writes:

When news broke about U.S. government agencies collecting metadata about its citizens’ Internet and phone communications, many were surprised by its scope. The surveillance covered a vast number of Internet messages and phone calls. The government did not deny the action but pointed out that the collected data contained, not the substance of the communication, but the so-called metadata.

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Giving it all away

Paying with our privacy

Mark Bridge writes:

There’s been a lot of talk recently about PRISM, which may allow the US National Security Agency - and anyone they choose - to access some of our personal online information if it passes through the USA. It’s unclear exactly what (if anything) is being shared with whom… and given the nature of national security, we may never know.

However, alongside the possibility of governments seeing information we thought was secure, it’s also worth pointing out that we choose to share plenty of online information ourselves.

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6 things you need to know about mobile research, smartphone rumours and imaginary new products

Mark Bridge writes:

Where did it all go wrong?  When did the mainstream mobile industry start to slide away from innovation and into repetitive nonsense?  For a while I suspected the downloadable ringtone was to blame. Just days after hearing 'Barbie Girl' on the mobile phone of a man from Vodafone Value Added Services in the late 1990s, I'd downloaded a poptastic tune to my own Nokia 2110. Soon, the entire mobile world was focussed on 30-second instrumentals instead of technical innovation. It was the beginning of the end.

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Recent Podcasts

Reviewing our 2015 mobile industry predictions... and looking forward to 2016

Podcast - 15th January 2016

Iain Graham, James Rosewell and Mark Bridge return to review their mobile industry predictions from last year. Which mergers, partnerships and developments did they forecast correctly... and which didn’t work out as planned?

Later in the programme, the team anticipates some of the topics that will be hitting the headlines during 2016.

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Podcast from Mobile World Congress 2015

Podcast - 6th March 2015

Mark Bridge learns about the mobile technology trends at Mobile World Congress 2015 by chatting to James Rosewell of 51Degrees, Dr Kevin Curran from the IEEE and Chris Millington of Doro.

They talk about wearable devices, wireless charging, mobile operating systems and much more... including some of their favourite products from the exhibition.

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Looking back at February: from security scares to multiple MVNOs

Podcast - 27th February 2015

We're taking a look back at the biggest mobile industry news stories from February 2015, including allegations that the UK's security service tried to breach SIM card security by hacking into one of the world's biggest SIM producers.

We also talk about the planned BT and EE merger, the creation of two new UK virtual networks, some acquisitions in the mobile payment arena and a new Ubuntu smartphone.

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Interview with Chris Millington of Doro about mobile retailing, wearables and technology for older consumers

Podcast - 24th February 2015

In today's programme Mark Bridge talks to Chris Millington, who's Managing Director for Doro UK and Ireland.

They discuss the state of mobile retailing in the UK, the future of wearable devices and - as you might expect - smartphones for seniors.

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

Podcast - 30th January 2015

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?

We also discuss Apple's record-breaking quarterly figures, the highlights of CES and the launch of Microsoft Windows 10, as well as saying farewell to the current version of Google Glass.

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