UK telecoms watchdog Oftel this week formally asked the
Competition Commission to investigate whether the charges that the
four mobile network operators make for connecting calls to their
networks, known as termination charges, are too high.
Oftel believes that mobile termination rates are substantially in excess of cost. Oftel has proposed that they are reduced through a charge control over the next four years. This week's referral begins a formal process in which the Competition Commission has six months to reach a decision, although this can be extended by a further six months.
Vodafone, BT Cellnet, Orange and One2One have already rejected Oftel's proposals to reduce these charges which is why Oftel has requested the Competition Commission investigation. If it agrees that the charges are too high, and consequently against the public interest, regulation of the termination charges is likely to follow.
Interested parties are invited to comment by 23rd January to mobilephones@competition-commission.gsi.gov.uk.
