Mobile-to-mobile call tariffs to be cut: Competition Commission

According to a report in the Financial Times the UK’s Competition Commission will call for aggressive cuts to the cost of calls between mobile networks. Following a twelve-month probe into termination charges, the competition watchdog has recommended large one-off cuts in these tariffs as well as annual reductions over the next few years. The move is expected to reduce termination charges by up to a third over the next few years; much of the saving is expected to be passed on to the consumer. Operators have, somewhat predictably, warned that if they are forced to cut charges they will be forced to recoup the revenue elsewhere. Earlier this year MmO2 helmsman Peter Erskine infuriated consumer groups by claiming that such a move will lead to job losses and a cut in 3G investment. Operators also point to the fact that market forces alone have seen daytime termination rates fall by on average 7% a year over the past five years, while weekend rates have declined by around 17% a year over the same period. The Commission’s recommendations must be implemented by Oftel by April.