The Cost of Calling Mobile Phones Could Go Down After Competition Tribunal Decision

The Competition Appeal Tribunal dealt another blow to the mobile network providers by questioning the way the industry regulator Ofcom calculates the percentage that mobile phone operators need to pocket.

Landline operator BT says that prices for calling a mobile phone is still too high and that consumers are losing out around £1 billion a year, because the mobile termination rates are so high.

The decision could impact on the way Ofcom calculates price drops from now on; under current plans, the termination rate will fall by as much as 45 percent over the next three years but BT has already said that the cuts would be deeper.

Three will be the most affected after the competition appeal tribunal sided with Ofcom over the decision to consider Three Networks as a major mobile network operator, a decision that means that the Hutchinson-owned company will have to be dropped its termination rates to 5.9p a minute from 10.7p a minute.

Interestingly, Three has also been campaigning to get rid of mobile termination rates altogether, something that Germany and the US have already adopted and which would generalise true unlimited call packages.