Ofcom looks to lower the cost of call mobiles even further

29 March 2010

Bitterwallet - HTC HeroIt's mobile phone mania at Ofcom, where they're taking an axe to current policy in the next week. Aiieee! Off with the head of calling mobiles, as Ofcom is set to propose new caps on the price that operators can charge one other as well as fixed line companies. Arrgh! Guts and viscera pour everywhere as the regulator finally looks to shorten the length of time to port numbers between service providers. Of course there's likely to be nothing but minor flesh wounds suffered by the operators - this is Ofcom after all.

According to the Guardian, cutting the cost of the termination rates - the charges levied by providers on one another - could mean the mobile phone industry losing out on up to £1 billion in revenue. While some of the larger service providers are likely to huff and puff, such a move is currently welcomed by both BT and 3.

As for switching networks with the same number, the EU has already decreed that the process should be hassle-free and take no more than a single working day. Ofcom had been pushing for the process to take no longer than two hours, but acquiesced when the operators got all grumpy with them.

[The Guardian]

8 comments

  • Jeffers
    OK. So we'll see contracts go from 18 months to 24 months to 36 months. Or the cost of line rental go up. Or the cost of handsets increase. Or the complete demise of per-second billing. Ofcom don't seem to realise that each regulatory burden they put in place results in a stealth increase elsewhere. Networks still need to make money to pay for their existing infrastructure and to build their 3G/3.5G systems and to service their lofty levels of debt. Also, it's a bit cheeky that 3 are calling for the interconnect rate to be decreased - they're the most expensive mobile network to call from a BT line.
  • Brian
    If they keep pushing this, we'll just end up like Canada - paying £300 for a handset and then £50 a month for 3 years for service, because there will be no other option. LIke it or not, if we want companies to provide service - we have to pay for them (insert shock emoticon here).
  • bpdunc
    Oh yes, we have to pay for that service... even if it's shit and years behind everywhere else.
  • Businessman
    There is always the (obviously contentious) point of view that as all the mobile operators are robbing us blind Ofcom are doing their job and smacking them one. I don't want to hear about Shitecom's profits nosediving to only 100 zillion as a result.
  • james d.
    bpdunc, you appear to be another of the "if its in the UK it must be shit" idiot crowd. On what do you base that our mobile network is years behind everywhere else? We actually have one of the best and most competitive mobile phone markets in the world.
  • Jeffers
    The UK mobile 'phone market provides execllent value for money*. But, like most other sectors, you just have to be prepared to do some work and shop around. As with other areas (computers, consumer electronics, clothes, books, DVDs) avoiding the high street is a good start. (*I'm effectively paying £6.88 a month for 300 minutes, unlimited text messages, 500MB of data and BlackBerry's Internet Service.)
  • Ed
    "Call mobiles"? Are those anything like call girls?
  • This B.
    [...] speculation earlier in the week, Ofcom have decreed that the cost will be reduced from 4.3 pence per minute to [...]

What do you think?

Connect with Facebook, Twitter, or just enter your email to sign in and comment.

Your comment