Feeds

Vodafone says termination rate clampdown would hit the poor

Pull the other one

Build a business case: developing custom apps

Vodafone today claimed 40 million Europeans will be forced to drop their mobile phone service if EU-led moves to scrap the current call termination charging system go ahead.

Pay as you go users who make fewer outgoing calls would face big retail price hikes if operators lost revenues, the firm said. Those typically poorer customers would be the ones forced to switch off, it claims.

A submission to media and information society Commissioner Viviane Reding, Vodafone said that US-style charging of customers for receiving calls would cause prohibitive price increases to consumers, the Financial Times reports.

The submission has been passed to the paper just days after Ofcom said it would consider the US system in its review of termination rates. It'll form part of the evidence for Reding's consultation on termination rates.

Vodafone said its survey of 9,000 mobile phone users showed significant resistance to the notion of paying to receiving calls.

The current system sees the network where the call originates bear all the cost of the call. Reding has said several times that she believes this is anti-competitive, as smaller networks must pay out more, while the big players broadly break even. In the UK all operators except 3 would like to see the current regime remain in place.

Reding plans to impose a cut in termination rates from an average of €0.08 per minute to less than €0.02 per minute by 2012.

Proponents of the US system, where the costs of calls is shared by the originating and the receiving network, argue that increased competition means consumers get a better deal. US mobile subscribers typically pay less for calls than their European counterparts. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
Don't call it throttling: Ericsson 'priority' tech gives users their own slice of spectrum
Actually it's a nifty trick - at least you'll pay for what you get
Three floats Jolla in Hong Kong: Says Sailfish is '3rd option'
Network throws hat into ring with Linux-powered handsets
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
PwC says US biz lagging in Internet of Things
Grass is greener in Asia, say the sensors
Ofcom sees RISE OF THE MACHINE-to-machine cell comms
Study spots 9% growth in IoT m2m mobile data connections
O2 vs Vodafone: Mobe firms grab for GCHQ, gov.uk security badge
No, the spooks love US best, say rival firms
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.