4/1/2010 11:01:00 AM
2015 ‘not soon enough’ for termination rate cut, says 3
Ofcom’s proposals to cut termination rates to 0.5p by 2015 have met surprise opposition from 3, which says the four year waiting period ‘is not soon enough’.
Ofcom has proposed a reduction on termination rates from around 4.3p per minute to 0.5p per minute by March 2015.
3 UK director of regulatory affairs Stephen Lerner said although 3 ‘is absolutely delighted’ with the cuts, its ‘only concern is that it is not soon enough’.
He said: ‘The cut in termination rates will lead to a reduction in prices for consumers – there is no reason to wait until 2015. These prices are excessive and they should come down sooner.’
3 is expecting its retail prices to be cut by 25%. Lerner said: ‘For us, we are a net outpayer and at the same time we are a net recipient. The effect on our bottom line is increased profitability – we will be able to go after share more.’
He added that the voice market will become ‘like the data market’, which will be ‘good for consumers’.
A 12 week consultation period will follow Ofcom’s proposals, announced today (1 April), during which time 3 will campaign to bring termination rates down more quickly.