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Ofcom calls for mobile termination rate cuts

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  • 13-09-2006 9:36am
    #1
    bealtine
    Registered Users Posts: 4,051 ✭✭✭


    Ofcom calls for mobile termination rate cuts
    Published: Wednesday 13 September 2006 | 09:12 AM CET


    UK regulator Ofcom has proposed cutting wholesale mobile termination rates further. The current agreement on rates expires in March 2007. The five major network operators have all been deemed to be significant powers in the market and will be subject to rate cuts in four steps for the four years to early 2011. Average charges for Vodafone, O2 , Orange and T-Mobile are expected to fall to GBP 0.053 per minute by 31 March 2011. This would remove the current difference in charges between users of 1800 MHz and 900 MHz spectrum. Network operator 3's charges are expected to fall to GBP 0.06 per minute by 2011, reflecting a different cost base for the 3G operator. Ofcom will re-evaluate the proposed final level of the charges and the glide path cap for implementing the gradual reductions following a public consultation. The consultation runs until 22 November, with a final decision on the rates expected in early 2007.


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    #2
    probe
    Closed Accounts Posts: 2,055 ✭✭✭probe


    bealtine wrote:
    Ofcom calls for mobile termination rate cuts
    Published: Wednesday 13 September 2006 | 09:12 AM CET
    Arcep made a similar direction for France on 25 July 2006. Orange and SFR will be down to 7.5c/min from 2007.

    <.cg edit .. replaced URL with working truncated one> http://url.ie/223

    (URL too long for boards.ie > easy to find from www.arcep.fr home page if needed)

    probe


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    #3
    Urban Weigl
    Closed Accounts Posts: 2,784 ✭✭✭Urban Weigl


    What are the current termination rates here in Ireland (Vodafone, O2, Meteor and 3)? Last I checked, I think they were still close to 20c a minute (lower in the evening and weekends). Seems a tad more than what they have in the UK and France.


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    #4
    probe
    Closed Accounts Posts: 2,055 ✭✭✭probe


    Urban Weigl wrote:
    What are the current termination rates here in Ireland (Vodafone, O2, Meteor and 3)? Last I checked, I think they were still close to 20c a minute (lower in the evening and weekends). Seems a tad more than what they have in the UK and France.
    http://www.comreg.ie/_fileupload/publications/ComReg0602.pdf

    (usual oirish expensive stuff - particularly when it comes to Eircom/Meteor at 16,36c/min!)

    probe


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    #5
    Urban Weigl
    Closed Accounts Posts: 2,784 ✭✭✭Urban Weigl


    Ouch. Not to mention that list excludes vat, so it's 19.80c a minute to you and me


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    #6
    probe
    Closed Accounts Posts: 2,055 ✭✭✭probe


    Urban Weigl wrote:
    Ouch. Not to mention that list excludes vat, so it's 19.80c a minute to you and me
    Not to mention too that these are just termination rates - ie wholesale stuff. Whichever phone company you are using to originate the call is taking a margin on top of that.

    Amazing when one considers that it is possible to call a mobile number in China or North America for around 2c/min (inc VAT) via many VoIP service providers!

    Mobile is a racket. The installed infrastructure base costs a fraction of the cost of building the fixed line networks. No poles carrying cables running to each cellphone. etc etc. Yet call charges in many countries including IRL are several times the cost of using a landline.

    probe


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    #7
    Blaster99
    Closed Accounts Posts: 2,630 ✭✭✭Blaster99


    Yeah but in the US (and possibly China), the receiver pays for the call. For the caller it's just another landline number.

    I'm slightly curious as to how 13434 can charge 10cpm for a mobile call in Ireland and 5cpm at weekends if those rates are correct.


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    #8
    Urban Weigl
    Closed Accounts Posts: 2,784 ✭✭✭Urban Weigl


    13434 charge a startup fee of 5 cents in addition to 10 cents per minute weekdays. It's also likely most of the calls will be off-peak, and they work off tight margins as they have very little (if any) customer service staff.


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    #9
    probe
    Closed Accounts Posts: 2,055 ✭✭✭probe


    Blaster99 wrote:
    Yeah but in the US (and possibly China), the receiver pays for the call. For the caller it's just another landline number.
    Yes but it (incoming call charges) just come off your airtime minutes same as outgoing calls - and with most operators, you get zillions of minutes for a typical monthly subscription. Far more than on European networks' packages.

    probe


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    #10
    Blaster99
    Closed Accounts Posts: 2,630 ✭✭✭Blaster99


    Urban Weigl wrote:
    13434 charge a startup fee of 5 cents in addition to 10 cents per minute weekdays. It's also likely most of the calls will be off-peak, and they work off tight margins as they have very little (if any) customer service staff.

    So you think they lose money on calls that last more than 30 seconds? I somehow doubt that. There are VoIP providers who charge 15c a minute without any setup charges, so the interconnect rates must be cheaper than was stated above.


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    #11
    Urban Weigl
    Closed Accounts Posts: 2,784 ✭✭✭Urban Weigl


    They might make losses for calls made during the day, but profit for calls made off-peak and at the weekend.


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