Feeds

Mobile phonecos braced for tough price cuts

Competition report due out next week

  • alert
  • submit to reddit

High performance access to file storage

It appears that the UK's mobile phone operators have lost their fight to stave off enforced price cuts following a year-long investigation by the Competition Commission.

The FT reports that termination charges - the fees service providers charge for routing calls from other operators through their networks - could be slashed by 15 per cent with a further 14 per cent reduction over three years.

Any price cuts would be implemented from April, according to the newspaper.

News of the tough price cuts appears to have come from a leaked report, which is expected to be published by the Competition Commission next week.

In January last year, telecoms regulator Oftel formally asked the Competition Commission to investigate whether the charges mobile operators make for connecting calls to their networks were too high.

Oftel referred the matter to the Competition Commission after the mobile phone operators rejected inflation-busting price controls of Retail Price Index (RPI) minus 12 per cent for the next four years.

Oftel said that mobile termination rates were "substantially in excess of cost".

In July, the Competition Commissioner told mobile operators they were charging too much for connecting calls from other networks and recommended that prices be capped.

Mobile phone operators argue that any price cuts would be against the long-term interests of consumers. ®

Related Stories

We're paying too much for mobile calls - official
Orange sees red over price regulation
Competition Commission to rule on cellphone charges
Oftel refers mobile companies to Competition Commission
Mobile operators slam Oftel's price cut plans

High performance access to file storage

More from The Register

next story
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
Broadband Secretary of SHEEP sensationally quits Cabinet
Maria Miller finally resigns over expenses row
Skype pimps pro-level broadcast service
Playing Cat and Mouse with the media
Beat it, freetards! Dyn to shut down no-cost dynamic DNS next month
... but don't worry, charter members, you're still in 'for life'
Like Google, Comcast might roll its own mobile voice network
Says anything's possible if regulators approve merger with Time Warner
EE dismisses DATA-BURNING glitch with Orange Mail app
Bug quietly slurps PAYG credit - yet EE denies it exists
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.