Network operators appeal Ofcom's MTR decision

Network operators appeal Ofcom's MTR decision

Everything Everywhere, Three, Vodafone and BT have made appeals to the UK's Competition Appeal Tribunal, following a decision by Ofcom to reduce mobile termination rates in the period to 2015.

The submissions from Everything Everywhere and Vodafone will be supported by O2 UK, according to a report in the Financial Times.

The regulator announced its plans in March, stating that termination rates would fall by 80% over four years.

Documents published by the Tribunal indicate that Everything Everywhere and Vodafone believe that the regulator was wrong in its assessment of the ‘long run incremental cost’ (LRIC) of providing mobile call termination, arguing that it should have adopted a 'LRIC+' model. Everything Everywhere also said that it believes the watchdog’s future data forecasts are flawed.

Three takes a different tack. It argues that ‘Ofcom set rates too high for all four years of the charge control imposed by the decision because Ofcom has relied on costs associated with certain items of radio access network equipment that are wrongly stated.’

BT has also made a submission, which states that ‘Ofcom erred in failing to make a one-off adjustment to the rate at the start of the control to current ‘LRIC Plus’ levels, to strip out the unjustified windfall profits made by the mobile network operators in respect of prices which exceed even LRIC Plus rates .’

Written by Mobile Today
Mobile Today


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