Vodafone requests Re-evaluation of the Severe MTR Decision

It is believed that Vodafone would be trying to apply for a legal re-evaluation of the decision taken by the Competition Commission regarding mobile termination rates (MTR).

The verdict passed by the Competition Appeals Tribunal the previous week took another step more than what the telecoms industry regulator Ofcom had been proposing since 2011. As per the new ruling the cost per minute will be drastically reduced from 4.18 pence to .0.65 pence.

This resolution was vehemently attacked by Orange, Vodafone and Everything Everywhere and a representative of Vodafone stated the previous week that the decision would only eventually end up harming uses and spoil the prepay market. The representative asserted that the decision would only result in the fixed line operators would take all the reduction and put MTRs in their pockets rather than actually lowering the rates.

He also stated that they had cautioned Ofcom, when they had made their earlier decision known, that such sever reductions in terminations rates would discourage a lot of consumers who depend on their phones to be in contact with family and friends and he said that, that was exactly what had been going on.

At the same time a representative for O2 stated that O2 was not planning to put in an application for a re-evaluation. He said that they had made their stand lucid. At the end of the day it was not known whether O2 would put in the application for a review.

Both Ofcom and Three had supported the CAT judgment, with a representative of Three saying that the verdict would result in more aggressiveness and benefits for the customers.

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