Why are we doing this?
We want people like your gran to be able to call your mobile without worrying too much about her bill. On a bigger scale, we want public bodies like the NHS and local councils to make calls to mobiles (which can be typically 10 times higher than calls to fixed lines), as well as landlines, without running up huge additional costs.
MTRs hit you where it hurts because they create an artificial ‘price floor’. This keeps consumer prices high because charging less than the MTR is not economical.
Removing over-inflated MTRs would enable companies like BT and Three to offer you even better deals. Without MTRs it would be possible to offer fixed-price bundles offering unlimited calls, which would include calls to mobile phones on all UK mobile networks.
We’re talking about the kind of deals you’ve never heard of before. Like all the calls you can make to UK fixed and mobile numbers for a flat fee each month, with other services included too.
Our promise to you
With low MTRs, we will be able to offer you a guaranteed, revolutionary new type of contract:
On the 1st July 2010, Three launched The One Plan in direct response to the direction laid out in Ofcom’s proposal in April 2010. For £25, this plan offers 2000 cross net inclusive minutes, 5000 Three to Three minutes as well as all-you-can-eat data.
Falling MTRS have made it possible for Three to offer many more thousands of inclusive minutes. We made the decision to launch this plan ahead of a final position from Ofcom in order to bring the benefits to consumers early. Because we were prepared to take an initial hit, consumers are able to experience the benefits of low MTRs sooner.
Some of our rivals who make a lot of money from MTRs claim that lower MTRs will lead to charges to receive calls on mobile. We think that’s nonsense. We don’t charge for incoming calls now and we never will. If MTRs are lowered in line with actual costs, Three promises that along with offering all you can eat deals:
“We’ll never charge you for receiving a call on your mobile phone!”
BT is committed to giving you great value products, promotions, deals and bundles. We’ve already managed to squeeze more out of the reduced regulated termination rates than expected, in order to offer even better prices to our customers. BT wants to offer ‘all-you-can-eat’ packages where you pay a set price and have the peace of mind that all calls will be covered, including those to mobiles. Current termination rates make that impossible.
“This is a massive issue for landline customers. Last year they made 13 billion calls to mobiles (around half of these are BT customers), which gave the mobile operators a £750m bonus.”
“Bearing in mind the cost of Mobile Termination Rates, it’s easy to see how cheap calls to mobiles could be if termination rates were reduced to around a penny or less.”