Feeds

Mobile termination fees go to Competition Commission

Tribunal passes the buck

Top three mobile application threats

BT's argument that Ofcom used the wrong formula to set mobile termination fees has proved compelling - the ongoing case against the regulator has been handed over to the Competition Commission.

The case is being pushed by BT and 3UK, the two who have most to lose through the new termination fees set by Ofcom in March last year, while Ofcom has O2, T-Mobile, Vodafone and Orange in its corner.

BT loses out as it has to pay mobile operators every time one of its fixed-line customers calls a mobile, while 3UK used to get a special deal on termination as a newcomer with correspondingly fewer customers. Even the new prices, which came into effect on 1 April, give a slight advantage to 3UK - though not as much as it'd like.

3 would really like to see termination fees abolished entirely, arguing that this would make life simpler and open the options for more flexible tariffs, but until that happens it would like to go back to the biased system which favoured the newcomer.

3 argued that Ofcom doesn't have the right to set pricing, and therefore its attempts to do so are unlawful. The Tribunal is still considering that argument, but is assuming that Ofcom isn't breaking the law while the competition commission considers the matter.

BT's take is that Ofcom used the wrong methods to set the termination fees, and it is on this matter that the competition commission will rule in the next few months.

With the new prices already a year in effect, and the end of termination fees looming in the distance, it might seem a lot of squabbling over nothing, but termination fees are an important battle ground in deciding the future of telecommunication networks.®

Combat fraud and increase customer satisfaction

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
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
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
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?
Facebook splats in-app chat, whacks brats into crack yakety-yak app
Jibber-jabbering addicts turfed out just as Zuck warned
Google looks to LTE and Wi-Fi to help it lube YouTube tubes
Bandwidth hogger needs tube embiggenment if it's to succeed
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.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.