A PYMNTS Company

UK: Ofcom to cap mobile call charges after BT-EE merger

By  |  February 8, 2015

The cost of calls between mobile phone operators in the UK is set to fall after the industry watchdog proposed a new cap on charges.

Ofcom said that mobile phone termination rates should fall by almost 42%. The watchdog said it has ensured that mobile call charges have continued to fall as the economies of scale in the industry have increased over the last decade.

Since BT Group has finalised plans to buy EE, Britain’s largest mobile phone network, for 12.5 billion the CMA has introducced new price caps. “This deal would signal more significant change to the UK telecoms market, with O2 and Three also expected to merge.” said executive director Richard Lloyd.

An Ofcom spokesman added: “Today’s proposals would result in a small cut to the wholesale fees that mobile operators charge each other. This cut is intended to improve competition between operators.”

 

Full Content: This Is Money

 

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.