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.”

With Viviane Reding, EU telecoms commissioner, poised to propose a new round of price caps this month, mobile operators claim their capital spending has already slipped from 13% of revenues in 2005 to 11% last year – and could fall further.

The GSM Association – the global trade body representing more than 750 GSM mobile phone operators – citing data from a study by management consultants, says the industry’s return on capital employed was as low as 7% in 2007 or less than half that of other significant sectors such as steel and software.

Sources said this gives the lie to Reding’s claim that it is making excessive profits from “roaming” services in the EU.

Read the full stiry in the Guardian here.

With 15 million customers – half the country – spending £3bn on broadband every year, the gap is widening between the companies perceived as best and worst providers, according to uSwitch, which makes money by encouraging consumers to hunt out new deals.

Its survey of nearly 11,000 broadband customers suggests four million customers are not satisified with their provider and four out of nine companies have less satisfied customers this year than last.

Read the full story in ‘The Guardian’ here.