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Friday, February 6, 2015

Ofcom confirms its plans to cut UK mobile termination rates

Last June, UK communications regulator Ofcom published a consultation document that contained its plans for ‘mobile termination rates’. These are the wholesale charges paid by network operators when they connect calls to rival mobile networks, which then have an impact on call charges for consumers.

Ofcom’s now published a draft statement about mobile termination rates (MTRs) that’s intended to cover three years from April 2015. It needs to be formally recognised by the European Commission before it can be implemented, which is why it’s being referred to as a draft.

MTR charges have been driven down in recent years, sometimes prompting network operators to take legal action against the regulator. Ofcom’s latest proposal would cut MTRs from 0.845p at the moment to 0.516p in April 2017. (If adjusted for inflation based on 2012/13 prices, that’s from 0.817p to 0.477p.)

A final statement from Ofcom is expected next month.

[Ofcom draft statement]

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Author: The Fonecast
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