Rethink over mobile rates

Ofcom has revealed it will rethink its proposals for reducing mobile call charges, in response to European Commission (EC) pressure.

In September, the UK telecoms watchdog announced that from April next year it aims to reduce mobile termination rates – the fee operators charge each other to carry calls on rival networks – to 5.3p per minute for 2G/3G operators, and 6p per minute for wholly 3G operators. The pricing proposals include an allowance of 1.2p per minute for 2G/3G operators, and 1.9p per minute for 3G-only operators, to cover 3G auction costs.

However, in a letter made public last week, the EC revealed it “considers that the mobile termination rate charges proposed by Ofcom disproportionately reflect their historical 3G spectrum auction value and do not appear to reflect their current value”.

An Ofcom spokesman told IT Week that in response to the letter, it will be reconsidering its proposals.

Meanwhile, mobile operator Orange, which would be hit by the proposed lower call charges, is already implementing a scheme that could make up for any lost earnings. Last week, the firm informed its broadband customers that if they require a migration authorisation code (MAC) to change ISPs, only the first one would be free. “Repeated requests for MACs will be charged at £12 to cover administration fees,” Orange warned.

Unfortunately, generated MACs last only 30 days and so Orange users who are given MACs that then run out, as is often the case, will face paying the fees.