Ofcom to regulate 3G mobile termination rates |
|
|
Published
:
Wed, 13 Sep 2006 12:25
|
LONDON - British telecom regulator, Ofcom has put a proposal on the table, which if accepted, will see mobile operators in the country cut down prices that they charge for calls made to rival networks or landlines.
In a statement released to the media, Ofcom said, "Regulation ... remains necessary to protect consumers from unduly high prices". The proposed cuts in the prices may start from next year to 2011. It also said that they would be reviewing the SMS market next year.
Ofcom said that it would be looking at a average limit of 5.63 pence per minute to 6.31 pence per minute for each call that will be made. The limit depends upon whether the operators use 900MHz or 1800MHz spectrum bands for their networks. It has limited four mobile operators, Vodafone, O2, T-Mobile, Orange, to the 5.3 pence per minute range.
Analysts at Goldman Sachs have reported that this move could well be beneficial for the mobile operators in the long run. They see the possibility of other telecom regulators around Europe to follow the path of Ofcom.
"There is further benefit to the operators in that the Ofcom stance may be followed by European regulators in other countries," they said. Many also believe that Hutchison’s ‘3’ will be the most affected in a negative manner by this move. Morten Singleton, an analyst with WestLB, said, "'3' will be most affected by this as historically the 3G networks have not been regulated in wholesale and it has been charging more than its competitors".
|
|
|
|
Print this Story
BT wards off break-up, sets up independent unit to manage local network 