Mobile operators angered by EU price-cut proposals

Mobile operators angered by EU price-cut proposals

June 27, 2016

Mobile phone networks across Europe have reacted with anger at European commission proposals to cut cross network call costs by up to 70%.

EU telecoms commissioner Viviane Reding yesterday proposed that termination rates should be cut by 70% to reduce the price consumers pay for calls.

Termination rates are the charges that telecoms companies place upon each other for making cross-network calls.

The proposals were much more severe than expected, and saw Vodafone’s share price fall by over six pence to 139.8p.

Termination rates account for around 20% of network operators’ revenues.

In the UK, around £2.5 billion of mobile phone companies’ income comes from termination rates.

Companies across Europe have warned that such drastic price cuts would leave them unable to subsidise mobile phone handsets, ending ‘free phone’ deals, and pricing many customers out of the mobile market.

BT, however, welcomed the proposals, saying that termination fees are effectively a ’subsidy’ given by landline users to mobile phone companies.

Other proposals included reducing the variations in call prices across different European countries.

timyeo

Related Posts

Best ISPs short-listed for ISPA awards

Comments Off on Best ISPs short-listed for ISPA awards

BBC finds Panorama Wi-Fi report ‘misleading’

Comments Off on BBC finds Panorama Wi-Fi report ‘misleading’

UK broadband connections now over 14 million

Comments Off on UK broadband connections now over 14 million

COLT to provide US Ethernet services

Comments Off on COLT to provide US Ethernet services

DS2 leads the US supply of Powerline Technology solutions

Comments Off on DS2 leads the US supply of Powerline Technology solutions

Orange plans Uganda mobile network

Comments Off on Orange plans Uganda mobile network

Welsh University packs more data down fibre optic networks

Comments Off on Welsh University packs more data down fibre optic networks

BT announces holiday park Wi-Fi zones

Comments Off on BT announces holiday park Wi-Fi zones

Tiscali Enlarge TV Content

Comments Off on Tiscali Enlarge TV Content

Tatung chooses Starent for WiMax equipment

Comments Off on Tatung chooses Starent for WiMax equipment

Vodafone Gateway boosts home 3G signal

Comments Off on Vodafone Gateway boosts home 3G signal

HTC on track to hit growth targets

Comments Off on HTC on track to hit growth targets

Create Account



Log In Your Account