Ofcom implements termination rate reductions

Reuters is reporting that the British telecoms regulator Ofcom has ruled that mobile termination rates (MTRs) will be reduced by up to 21% in real terms as of today. Under the new ruling announced yesterday both Vodafone and O2 will cut their average mobile termination rates to GBP0.0471 (USD0.0687) per minute, a cut of 8.4% adjusted for inflation. Meanwhile Orange will cut its rates to GBP0.0484 per minute, an 11.1% cut. Hutchison Whampoa-owned 3 will see the largest percentage drop in its MTR, with Ofcom calling for a 20.9% drop to GBP0.0583 per minute. The ruling comes as part of as part of the regulator’s implementation of price controls for the next two years; Ofcom aims to have MTRs equalised for all mobile operators by the end of March 2011, and a further reduction in the rates is expected next year.