U.K. telecom regulator Ofcom said U.K. mobile carriers must reduce their mobile termination rates, in a further blow to the highly competitive market, which has already been forced to lower the prices of terminating calls on wireless networks.
Vodafone U.K. and MmO2 must reduce their average termination charges to about 10 cents per minute from nearly 15 cents per minute. T-Mobile U.K. and Orange must reduce their average termination charges from about 17 cents per minute to nearly 12 cents per minute.
The reductions will begin in September and must remain in place until March 2006. The carriers can vary the charges by the time of day, and the charges do not apply to third-generation networks.
“Today’s decision closes a lengthy process, where we have concluded that price controls are currently a necessary market mechanism,” said Ofcom Chief Executive Stephen Carter.
Mobile operators across Europe have been criticized for the high prices they charge consumers for mobile termination and roaming services. The first termination price controls were implemented on U.K. wireless carriers in 1998, with recommendations for further reductions made last year.
