6/16/2008 4:18:00 PM
Operators given green light to charge for incoming calls
Mobile users paying for incoming calls is an idea Viviane Reding, the European Commissioner for Telecoms would be ready to accept, she said in an interview with the Financial Times.
Reding has caused concern among the mobile operator community with talk about reducing termination costs networks charge each other, and which are a source of significant revenues for them. Operators have signaled that they might have to increase charges to customers if this revenue stream dried up.
The commissioner said she wasn’t opposed in principle to the model in place in the US, where the receiving party pays for a part of the call to compensate for reduced termination costs. Termination rates in the US are very low as a result of this business model.