3 has welcomed the European Competition Council’s decision forcing UK networks to reduce mobile termination rates by 2010.
UK networks have today been told they must reduce their mobile termination rates (MTRs) from 5.1p per minute, to 4.0p per minute by April 2010.
3 has campaigned MTRs for a number of years, claiming the rates to be “unnecessary” and “artificial”, costing them more than £190 million over five years due to an imbalance of customers, which increased the chance of 3 customers calling cross network.
3 CEO Kevin Russell said: “High mobile termination rates are wrong. They are a barrier to effective competition, provide an artificial price floor for mobile calls and lead to an unnecessary subsidy from fixed line customers to the mobile industry.
“Today’s decision from the Competition Commission is a welcome step, but doesn’t go far enough. 3 has argued for a more fundamental reform of the system that would see pence per minute wholesale rates being abolished or reduced to the level that fixed operators charge – of the order of 0.4ppm.”