News Articles

Wednesday, June 4, 2014

Ofcom wants UK mobile termination rates to keep falling

UK telecoms regulator Ofcom has published proposals that would see the wholesale cost of connecting mobile phone calls dropping to less than 0.5p per minute within three years.

These mobile termination rates (MTRs) are charged by rival mobile network operators when they connect calls to a different network. Although they’re not directly connected to consumer tariffs, this wholesale cost will form part of the calculations by network operators when they set their retail pricing.

Termination rates have fallen by 20p per minute within the past 20 years and are currently about 0.8p per minute. The last time Ofcom reviewed MTRs was in 2011, when costs were around 4p/min.

Brian Potterill, Ofcom Competition Policy Director, said “Consumers in the UK benefit from a thriving competitive market, and mobile calls have never been cheaper. The average cost of a call bundle has fallen from £40 to around £13 in real terms over the last ten years. We want to ensure mobile users continue to benefit from competition, which will deliver affordable services in the years ahead.”

Ofcom is asking for feedback on its proposals to introduce new charge controls on mobile termination rates from April 2015. The consultation closes in August 2014, with a final decision expected by March 2015.

[Ofcom consultation]

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

Categories: Networks and operators, NewsNumber of views: 1435

Tags: uklegalofcomtariff

Leave a comment

Name:
Email:
Comment:
CAPTCHA image
Enter the code shown above in the box below.
Add comment

Name:
Email:
Subject:
Message:
x

Follow thefonecast.com

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

Archive Calendar

«October 2016»
MonTueWedThuFriSatSun
262728293012
3456789
10111213141516
17181920212223
24252627282930
31123456

Archive

Terms Of Use | Privacy Statement