Skip to main content

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.

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.