Ofcom crack down on mobile phone charges

• Read full article
• Share this article
• Related articles

Ofcom review wholesale mobile termination charges

Ofcom have proposed new controls on wholesale mobile voice call termination charges, to come into effect when the current regulation expires in March 2007.  This will mean that by lowering wholesale prices, retailers will be encouraged to drop the charges that the customer pays.

In June 2004 Ofcom discovered that mobile network operators are able to control the cost of connecting other mobile network operators to their network and that regulations were required to ensure consumers were not charged excessive prices. 

Wholesale mobile call termination rate is the fee that your mobile network operator charges to connect your calls to landlines and other mobile networks.  Depending on the spectrum band the network operator uses, Ofcom imposed a limit of 5.63p per minute for 900MHz or 6.31p per minute for 1800MHz and up until now restrictions on charges have only applied to calls connected using 2G operator networks.  In March 2006 Ofcom commented that the controls remain necessary, and should be extended to 3G networks as well, but this regulation expires at the end of March 2007.

Ofcom proposes that the average termination charge of Vodafone, O2, T Mobile and Orange should be reduced to approximately 5.3p per minute across 2G and 3G networks, 3 should be reduced to approximately 6.0p per minute by November 2010.  Ofcom is looking into when these reductions should be implemented and on the precise level of control and the controls are due to expire on 31st March 2011.

Ofcom has also announced that it intends to review the wholesale text message termination charges in 2007. The review will take 12 – 18 months and any restrictions will likely be met with a good reception for the expanding UK text message market.

The deadline for responses to Ofcom’s consultation on mobile call termination is 22nd November 2006.  After reviewing the responses, Ofcom expects to publish a concluding statement in early 2007.