3GScottishUser
5th February 2006, 07:37 PM
From Mobile Today (03/02/2006):
All the big networks are lobbying industry regulator Ofcom to make a dramatic change in 3’s termination rates following the launch of 3’s new prepay proposition, WePay, accusing 3 of being ‘exploitative’.
Under WePay, 3 offers consumers 5p credit for every minute they receive a call and 2p for every text. Other networks argue that 3 is only able to do this by exploiting the higher revenues it receives when calls are made to its network, compared to those earned by the others.
Senior insiders at four of the five major network rivals to 3 told Mobile they have either filed a complaint or will be making one shortly. One network approached Ofcom as early as November last year in a bid to stop WePay’s launch.
‘It’s cynical and exploits the fact that 3 is unregulated and has different interconnect [rates than the other networks], so it’s pretty unfair… I think it stinks,’ said a senior executive at one of 3’s rivals.
Ofcom wiped off millions of pounds in revenue for the 2G networks when it decided to cut the amount they could earn from charging to receive calls from other networks in June 2004, arguing there was ‘no consumer choice in termination prices and a need for regulatory intervention.’
3 escaped Ofcom’s capping on termination rates after the regulator decided that stifling 3G networks was ‘in no one’s interest’.
A spokesman for Ofcom said: ‘Every operator with a 3G network is affected equally with the regulations. 3 is not the only 3G operator. Where there are restrictions they are there for a reason, and where there are no restrictions, they are not there for a valid reason too.’
3’s rivals argue this fails to acknowledge that all of 3’s customers use 3G networks, while only a small minority of theirs are on 3G.
A senior network director said: ‘We are currently reviewing the situation. It is an uncompetitive market if the Government in effect provides competitive advantage to one player.’
A spokeswoman for 3 said: ‘WePay and termination rates are not connected. 3 is encouraging customers to port their number across with a £10 incentive and when they do, 3 would only be charging GSM termination rates.’
http://www.mobiletoday.co.uk/artman-test/publish/article_1145.shtml
All the big networks are lobbying industry regulator Ofcom to make a dramatic change in 3’s termination rates following the launch of 3’s new prepay proposition, WePay, accusing 3 of being ‘exploitative’.
Under WePay, 3 offers consumers 5p credit for every minute they receive a call and 2p for every text. Other networks argue that 3 is only able to do this by exploiting the higher revenues it receives when calls are made to its network, compared to those earned by the others.
Senior insiders at four of the five major network rivals to 3 told Mobile they have either filed a complaint or will be making one shortly. One network approached Ofcom as early as November last year in a bid to stop WePay’s launch.
‘It’s cynical and exploits the fact that 3 is unregulated and has different interconnect [rates than the other networks], so it’s pretty unfair… I think it stinks,’ said a senior executive at one of 3’s rivals.
Ofcom wiped off millions of pounds in revenue for the 2G networks when it decided to cut the amount they could earn from charging to receive calls from other networks in June 2004, arguing there was ‘no consumer choice in termination prices and a need for regulatory intervention.’
3 escaped Ofcom’s capping on termination rates after the regulator decided that stifling 3G networks was ‘in no one’s interest’.
A spokesman for Ofcom said: ‘Every operator with a 3G network is affected equally with the regulations. 3 is not the only 3G operator. Where there are restrictions they are there for a reason, and where there are no restrictions, they are not there for a valid reason too.’
3’s rivals argue this fails to acknowledge that all of 3’s customers use 3G networks, while only a small minority of theirs are on 3G.
A senior network director said: ‘We are currently reviewing the situation. It is an uncompetitive market if the Government in effect provides competitive advantage to one player.’
A spokeswoman for 3 said: ‘WePay and termination rates are not connected. 3 is encouraging customers to port their number across with a £10 incentive and when they do, 3 would only be charging GSM termination rates.’
http://www.mobiletoday.co.uk/artman-test/publish/article_1145.shtml