Feeds

Euro mobe companies mass against cap proposals

Call my termination-rate bluff

The Power of One Infographic

Five European mobile operators have ganged up to fight Viviane Reding's proposal to cut termination rates by 70 per cent, with a study showing that it will lead to mobile phone users paying more.

The study comes from Deutsche Telekom, Orange, Telecom Italia, Telefonica and Vodafone, and finds that capping termination fees "would not necessarily lead to lower overall costs for owning and using a phone", not to mention leading to millions of people giving up mobile use entirely, and (quite possibly) the end of the world as we know it.

Vodafone has spun this line before. Back in 2002 the company claimed that capping termination rates would put 20 quid onto the cost of a pre-paid handset, which would see between 10 and 15 million punters giving up mobile communications in the UK; but that never happened, despite the cap.

Last week Voda was claiming that 40 million people will chuck their mobile phones if the cap on termination rates goes ahead, but this latest study goes further with the claim that punters will end up paying more for mobility.

The study points out that in the USA, where termination rates are much lower, punters pay an average of €11.73 a month more to their network operators, but that figure includes all services and features, so the comparison is unlikely to be particularly useful.

The proposal from the EU isn't designed to get rid of termination rates, just to cap them heavily, something that mobile operator 3 reckons won't hurt anyone.

"As they stand, the European Commission's proposals at the wholesale level will allow operators to recover the costs they incur in terminating calls from other operators' networks," CEO Kevin Russell told us in a statement. "There will be no need to charge consumers for receiving calls."

Which will come as a relief to Reg readers who seem to find the idea so objectionable - but we'll have to wait until the end of the year to find out how resolute Ms Reding is, and whether she can garner sufficient support in the EU to have the cap mandated. ®

The Essential Guide to IT Transformation

More from The Register

next story
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
Orange spent weekend spamming customers with TXTs
Zero, not infinity, is the Magic Number customers want
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
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.
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.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.