Vodafone seeking review of ‘drastic’ MTR decision

Vodafone seeking review of ‘drastic’ MTR decision

Vodafone is understood to be applying for a judicial review of the Competition Commission’s decision to cut mobile termination rates (MTRs).

Last week’s ruling by the Competition Appeals Tribunal (CAT) went further than Ofcom’s original proposals from 2011. The ruling means that by 2015, the cost per minute will plummet from 4.18p to 0.65p.

Vodafone, O2 and Everything Everywhere attacked the decision, with a Vodafone spokesman saying last week that the ruling would ultimately hurt consumers and damage the prepay market. He claimed the ruling would lead to fixed-line operators pocketing reductions in MTRs rather than reducing prices.

He said: ‘We warned Ofcom at the time of its original decision that drastic cuts in termination rates would disenfranchise many consumers who rely on their phones to keep in touch with friends and family, and that is what’s happening.’

However, a spokesman for O2 said it was not applying for the review. He said: ‘We have made our position clear.’ It was unclear as Mobile went to press whether it would file an application.

Three and Ofcom have backed the CAT ruling. A Three spokesman said the decision would lead to greater competition and consumer benefits.

Written by Mobile Today
Mobile Today


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