UK mobile operator O2 will lead any legal action against regulator Ofcom over its significant cuts to mobile termination rates (MTR), TelecomFinance has learned.
According to a source close to discussions between operators in the aftermath of the 80% cut…
UK mobile operator O2 will lead any legal action against regulator Ofcom over its significant cuts to mobile termination rates (MTR), TelecomFinance has learned.
According to a source close to discussions between operators in the aftermath of the 80% cut in MTR Ofcom has said it will demand over four years, Vodafone and Everything Everywhere would allow O2 to orchestrate a potential legal challenge.
This is based on the rationale that O2, which is owned by Spanish incumbent Telefonica, has previously been at the forefront of vocal challenges to reductions in MTR.
O2 was unable to comment on future legal action, but a spokesman confirmed the group had a right to appeal and it was considering all its options.
Separate sources close to Vodafone and Everything Everywhere also confirmed they were looking specifically at launching legal action.
Ofcom announced plans on Tuesday to slash the fee operators charge rivals for handling calls from their networks from 4.3p per minute to 2.66p per minute on 1 April 2011. By 2014, this fee will be phased to just 0.69p per minute – representing an 80% decrease to today’s levels.
Mobile operator 3, however, has welcomed Ofcom’s ruling, which it feels will increase competition for consumers.
Together with fixed-lined incumbent BT, the operator has been lobbying to lower the rate under the campaign group ‘Terminate the Rate’.
