8/10/2009 11:12:00 AM
O2 warns of steep price rises if termination rates are cut
O2 has warned Ofcom that consumers will be hit by higher prices if the regulator cuts mobile termination rates.
The operator claimed that the cost of calls, contracts and handsets could rise in an effort to recoup losses, if the regulator reduces the price of connecting calls between the networks.
O2 made submissions to Ofcom as part of a consultation process that is taking place to look at the effect of the move.
The operator also claims that the prepay customers would also suffer, as ‘sell-by-dates’ on credit could be imposed and MVNOs would also be affected.
3 and BT have partnered in the ‘terminate the rate’ campaign, that has gained 700,000 signatures, and almost 200 MPs have signed an early day motion.