Customer request cut down on rates of Mobile phone

By Saudi Ali, Thursday 5.11.2009

(SkyNewswire.com)--- The effort drives to cut down the mobile termination rates and reverberate actual prices for the service.

These values are what mobile operators charge to support other networks' traffic.

Signatories, including 258 MPs and 60 businesses, are asking for the fees to be reduced from 5p to lesser than 1p.

Pioneers of this campaign includes groups like BT and the mobile network 3. Mobile operators do gain from MTRs and supplies revenue but the signers claim that networks still do profit from the reduction for they can extend competitive prices to their potential clients.

On a sidenote, in Parliament the 258 MPs who are signers on this effort have also signed an Early Day Motion in Parliament for the MTR reduction.

A topic of examination by Ofcom for so long, MTRs ordinarily comprise of 14p per pound spent on internetwork mobile phone call charges.

Ofcom outlined a programme in 2007 to handle the costs, stating they would decrease by about 25% by 2011. In reply to this course of study, a consultation began last May to look into the rates for the period from the year 2011 to 2015.

Though MTRs have been falling year on year, campaigners reason the costs are still much more expensive than the real prices to mobile network operators.

In reaction for the developing need for MTR reduction, the European Comission asked for all regulators in Europe to cut down on the rates to further competition among mobile operators.

"This request is simply the initial stage in an ongoing crusade to present how MTRs stifle competition and increase the price of calling cheap mobile phones," said John Petter of BT Retail.

"Our aim remains for them to be set according to what they actually cost."

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