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UK Competition Commission issues mobile call termination determination
The UK Competition Commission (CC) has published its determination on price control matters referred to it by the Competition Appeal Tribunal in appeals brought against Ofcom by Hutchison 3G (H3G) and BT over mobile call termination rates. These are the rates paid between interconnecting networks to terminate calls to each other’s subscribers – they can account for up to 20% of a network’s revenues. In relation to the BT appeal, the CC has determined that the charges for connecting to the mobile networks should be reduced to 4.0 pence per minute (ppm) in the cases of O2, Orange, T-Mobile and Vodafone, and 4.4ppm in the case of H3G by 2010/11. The CC rejected H3G’s appeal which was arguing for higher termination rates for itself compared to the other mobile networks; or, alternatively, for the introduction of a ‘bill and keep’ mechanism, which would imply no interconnection payments between networks.
Frontier (Europe) advised Vodafone throughout the investigation.
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