3 continues fight against rate cuts

22 Aug 2008

UK mobile operator 3 will continue its legal challenge to regulator Ofcom’s ruling requiring the cellco to cut connection charges last year, the Financial Times reports. Ofcom’s March 2007 ruling called for a 45% cut in mobile termination rates across 3’s network by 2011. The ruling was the first time the regulator had brought 3 within its price controls regime for the charges; which has already been applied to O2, Vodafone, Orange and T-Mobile. Previous attempts by the cellco to have the ruling overturned have failed, with the Competition Appeal Tribunal (CAT) rejecting the case in May 2008. The CAT did however grant 3 leave to appeal to the Court of Appeal and indications are that the case will now be heard in early 2009. If 3 is successful, the operator would be free to raise its charges, although the operator has suggested that it wants mobile termination rates to be cut to zero by all operators.

United Kingdom, Hutchison 3G UK (Three UK)