Posts Tagged ‘termination’

Operators to charge for incoming calls?

Tuesday, June 17th, 2008

This doesn’t sound good. According to a number of reports, EC Commissioner Viviane Reding is planning to pare back mobile termination rates from 7p to around 1p. Funnily enough, mobile operators aren’t best pleased and have apparently told Reding that if she goes ahead with the cuts, they might be forced to charge customers to receive incoming calls.

Reding’s spokesman told the Telegraph: “Companies could introduce tariffs that made you pay to receive calls, but most consumers will not tolerate this. They will go elsewhere. This is an empty threat from the mobile phone companies.”

Too right. While operators in other countries might charge incoming call costs as the norm, trying to introduce a similar model in the UK years after the mobile market has matured would be something akin to operator suicide. Thankfully, it sounds like a lot of sabre rattling rather than a serious threat.

Operators ask to dodge termination fees

Thursday, March 20th, 2008

The Competition Appeal Tribunal has referred the question of wholesale mobile termination rates - the fee each operator charges another to connect a call on their network - to the Competition Commission after appeals by BT and 3.

The appeals come after Ofcom changed the controls on mobile termination rates early last year, which it said at the time would save operators £400 to £500 million a year and that saving should be passed on to retail customers.

According to The Guardian, the operators are now hoping to get termination rates down to nothing in order to be able to offer all-you-can-eat call plans of the type that have become common in the US. If that’s the case, great. If it saves the operators money, that’s great too - as long as the operators remember to send a bit of those savings our way, as Ofcom asked for.


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