Competition Commission to rule on termination fees

BT's ongoing battle with Ofcom over the issue of mobile termination fees has been referred to the U.K. Competition Commission for resolution. Ofcom introduced the new termination fees in April 2007 but BT argues that the regulator used the wrong formula in calculating the fee structure. BT loses out because it has to pay mobile operators every time one of its fixed-line subscribers calls a mobile number. In BT's corner is 3UK which used to get a special deal on termination fees because it was the new kid on the block and had the fewest customers. O2, Orange, T-Mobile and Vodafone are largely unaffected by the new fee structure. Given that the industry believes that termination fees are likely to be abolished in the near future the arguments seem redundant but the new structure is costing the aggrieved parties significant sums of money so presumably it is worth battling on.

For further information:
- go to The Register

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