Ofcom confirms plans for MTR reductions

9 Feb 2015

UK telecoms regulator Ofcom has published a draft decision following the conclusion of its review of the wholesale mobile call termination markets for the period 1 April 2015 – 31 March 2018, saying that in reaching its final decision on the matter it had ‘considered the significant developments that have occurred in the mobile market in the last three years, recognising that the UK mobile sector has changed in ways that are relevant to this market review’.

As previously reported by CommsUpdate, back in June 2014 Ofcom unveiled plans to reduce mobile termination rates (MTRs) further, despite saying that the rate had fallen ‘significantly’ in recent years on the back of its previous intervention. Now, in a draft statement following that consultation, the watchdog has confirmed that all of the nation’s mobile network operators from 1 April 2015 MTRs will remain capped at the current level of GBP0.0817 (USD0.12) per minute (at 2012/13 prices) until 1 May 2015, at which date the rate will be reduced to a maximum of GBP0.657 per minute. Looking further ahead, two further reductions are scheduled, with cellcos able to charge no more than GBP0.491 per minute from 1 April 2016, and GBP0.477 per minute from 1 April 2017.

Ofcom noted that the European Commission (EC) has been notified of the draft decision, and once this notification process is complete it said it expects to publish a final statement to bring its decisions into effect.

United Kingdom, EE, Hutchison 3G UK (Three UK), O2 UK, Ofcom, Vodafone UK