The cuts will likely please fixed operator BT and small mobile operator 3, who both teamed on a campaign to get the rate either cut or dropped entirely. Smaller mobile operators tend to pay more in mobile termination rates as their users are likely to spend more time communicating with other networks than their own. The UK’s larger operators – Vodafone, O2, Orange and T-Mobile – face losing out on up to £1 billion in revenue according to reports. Ian Scales of Telecom TV demands, “Why not take it to zero?”  But the Guardian is skeptic, “This is only a proposal from Ofcom so there will be an awful lot of lobbying from the four big networks, not least of the potential Conservative government, to reduce the severity of the price cuts.”

Ottawa opens up wireless industry to more competition

The Conservative government on Wednesday paved the way for new cellphone companies by announcing new rules for an auction of radio airwaves designed to spur competition in the wireless industry.

About 40 per cent of the spectrum will be reserved for new entrants, with the remainder open to all bidders, including Canada’s big three providers — Rogers, Bell and Telus. The government will also mandate roaming agreements, which will force existing carriers to share their networks with newcomers for five years, plus another five if the new entrants can build up their own networks nationally. If a new carrier is unable to reach a “reasonable” roaming agreement with an existing provider, an outside arbitrator will be brought in, Industry Canada said.

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