Mobile call termination market review 2015-18

  • Start: 04 June 2014
  • Status: Closed
  • End: 13 August 2014

Final statement published 17|03|15

This document is a final statement setting out the conclusion of our review of the wholesale ‘mobile call termination’ (MCT) markets for the period 1 April 2015 - 31 March 2018.

MCT is a wholesale service provided by a mobile communications provider (MCP) to connect a call to a recipient on its network. When fixed or mobile communications providers enable their customers to call a UK mobile number, they pay the terminating MCP a wholesale charge, called a ‘mobile termination rate’ (MTR). MTRs are set on a per-minute basis and are currently subject to regulation.

We published a consultation document on 4 June 2014 outlining our regulatory proposals for MCT markets. We have taken account of points raised by stakeholders and new information received since the consultation.

On 6 February 2015, we notified our intended measures and an explanatory draft statement setting out the reasons for them to the European Commission (EC), BEREC and other National Regulatory Authorities (NRAs) and we published our draft statement on the Ofcom website. On 6 March 2015, we received comments from the EC and have taken utmost account of them in reaching our final decision.

In this document we set out our decisions, including the regulation that we conclude is appropriate for MCT markets.

The regulation we have decided to impose includes a charge control on the MTRs of all MCPs offering MCT and is designed to promote competition and further the interests of consumers.

Mobile call termination market review 2015-18 - Final statement PDF, 1.6 MB

Mobile call termination market review 2015-18 - Annexes 1 - 6 PDF, 634.0 KB

Mobile call termination market review 2015-18 final statement - Annexes 7-13 PDF, 3.2 MB

Mobile call termination market review 2015-18 final statement - Annex 8 PDF, 1.5 MB

Mobile call termination market review 2015-18 final statement - Annex 13 PDF, 2.1 MB

Mobile call termination market review 2015-18 final statement - Annex 14 PDF, 196.0 KB

Mobile call termination market review 2015-18 final statement - Annex 15 PDF, 51.1 KB

2015 MCT model - This model should be run in Excel 2010 or a later version. In order to run the model, we suggest saving the zip file onto your computer, unzipping the six files into a folder and opening them individually in Microsoft Excel. Please also enable macros and allow links between the files to update.

2014 MCT model This model should be run in Excel 2010 or a later version. In order to run the model, we suggest saving the zip file onto your computer, unzipping the six files into a folder and opening them individually in Microsoft Excel. Please also enable macros and allow links between the files to update.

Draft statement published 06|02|15

This document sets out in draft the conclusion of our review of the wholesale 'mobile call termination' (MCT) markets for the period 1 April 2015 - 31 March 2018.

MCT is a wholesale service provided by a mobile communications provider (MCP) to connect a call to a recipient on its network. When fixed or mobile communications providers enable their customers to call a UK mobile number, they pay the terminating MCP a wholesale charge, called a 'mobile termination rate' (MTR). MTRs are set on a per-minute basis and are currently subject to regulation.

We published a consultation document on 4 June 2014 outlining our regulatory proposals for MCT markets. We have taken account of points raised by stakeholders and new information received since the consultation. In this document we set out our decisions, including the regulation that we conclude is appropriate for this market.

The regulation we have decided to impose includes a charge control on the MTRs of all MCPs offering MCT and is designed to promote competition and further the interests of consumers.

This draft statement is today being notified to the European Commission. Once this notification process is complete, we will publish a final statement to bring our decisions into effect.

Mobile call termination market review 2015-18 - Draft Statement PDF, 1.6 MB

Mobile call termination market review 2015-18 Draft Statement - Annexes 1-6 PDF, 634.0 KB

Annexes 7 to 13 on Cost modelling  PDF, 3.2 MB

Annex 8 – Analysys Mason report on Mobile network cost modelling

Annex 13 – Brattle report on Estimates of Equity and Asset Betas for UK Mobile Owners PDF, 2.1 MB

Annex 14 – Sources of Evidence PDF, 195.4 KB

Annex 15 – Glossary PDF, 51.1 KB

Response from European Commission to the draft statement PDF, 160.5 KB

This consultation document seeks stakeholders' view on our proposals for regulation of the wholesale 'mobile call termination' (MCT) market for the period 1 April 2015 - 31 March 2018.

MCT is a wholesale service provided by a mobile communications provider (MCP) to connect a call to a recipient on its network. When fixed or mobile communications providers enable their customers to call a UK mobile number, they pay the terminating MCP a wholesale charge, called a 'mobile termination rate' (MTR). MTRs are set on a per-minute basis and are currently subject to regulation.

The market review process requires us to identify any problems that might stem from market power and impose appropriate remedies. In order to do so, we identify and define relevant markets which are susceptible to regulation and assess whether any MCP has significant market power (SMP).

We then consider the appropriate form of regulation, if any, that should be imposed in the event that we find one or more MCPs has SMP in the relevant markets.

This document outlines regulatory proposals for the MCT market, including a proposed charge control on mobile termination rates which would apply from 1 April 2015. The proposals are designed to promote competition and further the interests of consumers.

This consultation closes on 13 August 2014. We plan to publish a statement by March 2015.

Correction: Figure A13.9 and Figure A13.10 were updated on 4 July 2014 to correct presentational errors identified in the consultation published on 4 June 2014. We have also removed paragraph A8.12 as it repeated the text in paragraph A8.13.

Our proposals and the 2014 MCT model are unaffected by these corrections.

Mobile call termination market review 2015-18 - Consultation PDF, 1.2 MB


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BT.pdf (PDF, 538.0 KB) Individual
H3G.pdf (PDF, 678.8 KB) Individual
Witheld1.pdf (PDF, 122.8 KB) Individual
Vodafone.pdf (PDF, 532.0 KB) Individual
Verizon.pdf (PDF, 43.3 KB) Individual