Mobile Call Termination Market Review

Mobile Call Termination Market Review

Issued May 25, 2006

Executive Summary

• Ofcom's assessment is thorough and the proposed application of price controls justified and proportionate.  There is a need for a single price control which applies to voice calls whatever type of network the mobile operators use to terminate a voice call.

• Current regulation is costing consumers over £200m each year against cost-based charges.  There is especially a need for urgent action to close the loophole whereby charges for using 3G networks are sometimes 2-3 times higher than regulated rates. 

• Charges from 2007 ought to be brought into line with the costs of terminating voice calls on 2G networks, implying price cuts of at least 10%.  These charges should then reduce by the rate of technical progress deemed to exist in mobile networks. 

• In 2011, when 3G networks may be the predominant form of mobile voice call termination, any further control might be based on the costs of these networks which, by that time, will be known with far more certainty than at present. 

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BT would welcome comments on this response.  Comments should be addressed to Alun Banner and sent by e-mail to alun.banner@bt.com