BT and T-Mobile UK argue over mobile termination rates

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Aug/05/2004

BT Group and T-Mobile UK are having a row over the mobile termination rates, which will have to be lowered on 1 September at orders from Ofcom, reports the Independent.

T-Mobile and Orange had to reduce average termination rates from GBP 0.095 per minute to GBP 0.0631 per minute. Mobile operators now have supplied details of their new rates to Ofcom. The operators have complied with Ofcom's request for a reduction in average termination charges by reducing daytime and evening rates. However, T-Mobile has increased the charges by 86 percent on Saturdays and Sundays, while Orange has increased them by 28 percent.

BT reacted angrily when presented with the information, accusing T-Mobile of raising prices and confusing customers. Gavin Patterson, BT's group managing director for consumer and ventures, said: "...while obeying the letter of the law they [the mobile operators] are not really following the spirit of the law by hiking prices at the weekend when lots of people use their mobiles.

T-Mobile reacted, accusing BT of actually increasing what it described as the "mark up" that BT will earn for connecting calls to mobile customers during daytimes and evenings. A spokesman for the company also pointed out that while Ofcom had demanded that average termination rates had to fall by 1 September, BT was not planning to change its charging structure to reflect the reductions to 1 October.

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