Feeds

Vodafone says termination rate clampdown would hit the poor

Pull the other one

Boost IT visibility and business value

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. ®

The Essential Guide to IT Transformation

More from The Register

next story
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
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?
What FTC lawsuit? T-Mobile US touts 10GB, $100 family-of-4 plan
Folks 'could use that money for more important things' says CEO Legere
prev story

Whitepapers

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.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.