...and why Mobile Termination Rates need to fall
James Rosewell writes:
Due to growth in staff numbers my business (51Degrees.mobi) is in the process of moving offices. Coincidentally I'm also moving our home broadband. It’s not been a pleasant experience.
This got me thinking, because a few weeks ago on thefonecast.com we discussed why Ofcom isn’t treating Mobile Termination Rates (MTR) in the same way as fixed-line termination rates. The mobile industry justifies higher MTRs on the assumption that a mobile network costs more to run than a fixed-line network. It was certainly true when the fixed costs of running a mobile network had to be shared across a relatively small number of customers, even if they did pay a fortune for their contracts and terminals. Intuitively I'd say that’s just not true anymore.
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