27 June 2017
Mobile call termination market review 2018-21
Ofcom has today published a consultation on proposals for regulating the wholesale 'mobile call termination' market for the period 1 April 2018 - 31 March 2021.
Mobile call termination is a wholesale service provided by a mobile operator to connect a call to a recipient on its network. When people call a UK mobile number, the caller's phone provider pays a wholesale charge to the recipient's mobile operator for connecting the call; this is called a 'mobile termination rate' (MTR). Because the caller's provider has no other choice than to pay this charge, MTRs are currently subject to regulation.
As in previous reviews, we have proposed a charge control on MTRs: a maximum cap, based on the estimated cost of connecting a call. This would apply to all mobile operators connecting calls in the UK from 1 April 2018. The proposals are designed to promote competition and protect consumers from high prices.
MTRs have fallen significantly over the years, as a result of Ofcom's regulatory intervention. Our proposed charge control would mean that the current cap of c.0.5p per minute would fall by around a tenth in real terms by April 2021.
The consultation closes on 5 September 2017 and is available on the Ofcom website:
Ofcom plans to publish a statement by March 2018.
This information is provided by RNS