Feeds

3 told to cut rates

No special treatment

Seven Steps to Software Security

3 is getting too long in the tooth to play in the kids' pool. The Competition Appeal Tribunal yesterday ruled that the mobe co, not being such a new player any more, is going to have to cut its termination rates to be more in line with other operators.

Termination rates are paid to the called party's operator, and are capped to prevent operators abusing people calling their customers. Ofcom recently decided that cap should, over the next three years, drop to 5.1 pence a minute for the other operators, and 5.9 pence for 3 on the grounds that 3 are still a new entrant and need some protection.

That figure represents a 45 per cent cut in the rate 3 is charging today. The operator took Ofcom to the Competition Appeal Tribunal (CAT) to argue it should be exempted, as it still hasn't got the market clout to survive without more protection. The CAT disagreed, and 3 have had to find solace in the fact they are now considered to have "Significant Market Power", which means less protection from the competition.

In a related case, the CAT also decided that termination disputes between operators should be arbitrated by themselves, rather than Ofcom, which will have an impact on other ongoing termination-rate disputes.

Perversely, 3 is simultaneously lobbying to have all termination rates removed entirely, paving the way for pay-to-receive telephony, telling anyone who'll listen that getting rid of termination rates will lead to lower prices for everyone and (quite possibly) peace in our time. ®

The smart choice: opportunity from uncertainty

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.