UK carriers may have to cut termination charges

23 Jan 2009

British mobile operators including Vodafone UK, T-Mobile and O2 may have to cut mobile termination rates (MTR) following a ruling by the Competition Commission, Reuters reports. In a submission to the Competition Appeals Tribunal (CAT) the Competition Commission has upheld an appeal by BT Group against regulator Ofcom. The submission calls for a reduction of termination rates; it recommends that the charges for connections to the networks of O2, Orange, Vodafone and T-Mobile be reduced to GBP0.04 (USD0.06) by 2010/11. Ofcom’s original recommendation was for a charge of GBP0.051. The Competition Commission has also recommended charges for connecting to the network of Hutchison Whampoa-owned 3 UK be lowered to GBP0.44 by the same date, against Ofcom’s GBP0.059 suggestion. The CAT will now consider the proposals, and the next case-management conference in the appeals process is expected on 2 February 2009.