Mobile Phone Wholesale Voice Termination Charges: Determination

Author:

Competition Commission (CC)

Publisher:

TSO (The Stationery Office)

Price: £87.00

On 27 March 2007 the Office of Communications (Ofcom) published a Statement on Mobile Call Determination (the MCT Statement), which set out the conclusions of its review of the market(s) for the supply of wholesale mobile voice call termination (MCT). MCT is the service necessary to connect a caller with the intended mobile recipient of a call on a different network.

Ofcom concluded that charge controls should be imposed on the supply of MCT by each of the five mobile network operators (MNOs) and should apply to voice call termination whether on 2G or 3G networks. Charge controls had not previously been imposed on calls terminated on 3G networks. Both H3G and BT brought appeals against the MCT Statement to the Competition Appeal Tribunal (CAT).

This report, which was submitted to the CAT, outlines the Competition Commission's (CC) report into the price control matters in the BT and H3G appeals. The report outlines the key submissions and pieces of evidence in relation to each of the points the CC considered.

The report answers a number of questions determined by the Reference, such as:

• whether Ofcom had erred for specific reasons given by the parties;

• how any such errors could be corrected; and

• a determination as to any consequential adjustments to the level of the price controls.

As part of this determination the CC acquired Ofcom's MCT cost model and externality surcharge model, received written arguments and evidence from the parties, issued requests where they needed further information, and issued provisional determinations for comment.

Contents:

• Introduction to the CC's determination

• 3G spectrum costs determination

• Administration costs determination

• Network externality surcharge determination

• Welfare analysis determination

• Path of unit cost recovery determination

• Customer acquisition retention and service costs determination

• Ported numbers determination

• Scenarios determination

• The 2G/3G target average charge

• Blended charge determination

• Glide path determination

• Net payment zero determination

• Market share forecast for an efficient 3G-only operator.

Competition Commission Reports

For more reports from the Competition Commission (CC), please visit the dedicated Competition Commission Reports page within our Business & Finance area.

Extent	383 pages	ISBN	9780117064843
Size	A4	Price	£87.00
Format	Paperback	Published	10 Jun 2009
Availability	In Stock: 1 - 2 days	Delivery	Delivery options and charges