Feeds

Vodafone says termination rate clampdown would hit the poor

Pull the other one

High performance access to file storage

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. ®

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
EE dismisses DATA-BURNING glitch with Orange Mail app
Bug quietly slurps PAYG credit - yet EE denies it exists
Like Google, Comcast might roll its own mobile voice network
Says anything's possible if regulators approve merger with Time Warner
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
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.