MP’s Want Mobile Operators to Get on with It

A committee of UK MPs is urging mobile operators to stop fighting over how to share out the airwaves that will deliver next-generation services and get on with it.

The switch-over to digital TV has been key to providing the much-needed bandwidth for data services following the exponential rise of smartphones.  The result freed up a spectrum of airwaves that are now being fought over by the top mobile operators. 

The spectrum being auctioned is particularly valuable because it is low frequency and therefore covers greater distances. Regulator Ofcom hopes to hold the sale mid-2012, meaning that the UK is on track to be one of the last European countries to hold its 4G auction.  

Amidst a complex list of complaints, Ofcom has made clear that it wants Three to remain as a competitor in the UK mobile landscape because it has ensured that consumers get innovative services and low prices.  Therefore, in its proposals for the spectrum auctions the watchdog set mechanisms to ensure that Three got a portion of the 4G spectrum at a minimum price.  This angered O2 and Vodafone who threatened legal action over the floors, claiming they amounted to state-aid for Three.

Three, Vodafone, O2 and Everything, Everywhere are all planning to meet with Ofcom and the Government during the second consultation period in December to try and decide how the auction should work.  

Drop in Costs For Cross Network Calls

The fee mobile phone firms charge rivals for handling calls from their networks, is set to fall by 80% over the next four years following cuts imposed by Ofcom. 

Currently, mobile operators charge between 4.18p and 4.48p for delivering a call to another network.  However, Ofcom wants this to be reduced to 0.69p by 2014-15, and says it expects the cuts to be passed on to customers.  The proposed changes should increase competition within the market and thus, improve prices for consumers.

The phased reductions will begin on 1 April with the termination rate for the big four operators - O2, Everything Everywhere, Vodafone, and 3UK - cut to 2.66p. Lower termination rates will also reduce the cost to landline companies of passing calls to mobile phones.

All-you-can-eat Smartphone data tariff

As the nations appetite for the smartphone market grows, mobile operator Three has adopted an all-you-can-eat data plan to encourage sales. 

Living in the fast lane has certainly increased the demand for on the go data.  More and more people use their handsets to connect to the web as well as to make voice calls.  The all-you-can-eat data plan has been designed so that individuals can make the most of their devices.

Three, is one of the smaller mobile operators, but there is a feeling in the industry that this move could force other operators to rethink data limits.

Earlier this year, Mobile operators, including Three, introduced data caps over fears that some users were consuming so much data it was putting unacceptable strain on networks.   The reversal of this decision by Three could put a massive strain on the operators network.