3 UK has lodged a complaint with the Competition Appeal Tribunal against Ofcom's capping of termination rates, claiming it will restrict its ability to turn a profit. The termination rate is the amount paid to the receiving operator when a call is made into their network - so when a T-Mobile customer calls a 3 customer, T- …
Of course, if 3 manage to keep their termination rates high, it means it will cost us all more to call a 3 number which means that even more of us won't do it, thus hitting their profitability even more.
Hang on a minute
Firstly there is no public responsibility for ensuring that Three is profitable. It isn't even a UK firm, being owned by Hutchison 3G of Hong Kong. The Three group has lost billions of dollars on speculative 3G networks and trying to find room in the UK between Vodafone, 02, T-Mobile and Orange has been a largely futile task. If the other four major networks also have to cut their termination caps then Three should be treated no differently. It isn't the fault of the other companies that Three hasn't got enough customers and that more people phone out of Three's network than phone in to it.
It is also total crap that the problem Three has is the supposedly "broken" regime the UK has in moving your number from one company to another. The problem Three has is it just doesn't provide an engaging enough reason to move to them in the first place, they're expensive, riddled with gimmicks, expensive and their tariff is confusing. If Three didn't exist, no one would invent them.
playing by the same rules ?
Is this another sign that 3 are still actors in search of a script, . They have built a decent 3G network but their lack of a mature 2G network (which other operators have and which still carries the substantial share of UK mobile voice traffic) continues to be a severly limiting factor. This means that when a customer moves out of range of one of 3's cellsites the call has to be handed over to one of the other operator;'s basically under a roaming arrangement. Naturally this has to be paid for and cuts into the profits that 3 would otherwise make.
So is a special deal on termination charges for 3 fair or would it just be fairer if they were encouraged to build their own 2G netwoirk in order they could stand on their own feet and take charge of their own profit and loss in the marketplace.
Don't worry 3, your never going to actually terminate the call anyway - half the phones out wont have any signal!
On the 3 web site for Pas as You Go they say --
"You'll still get all your WePay rewards . It means when you answer a call we pay you 5p a minute. And we'll throw 2p your way for every text you receive."
Who is paying for this ? No wonder they do not want the termination charges capped.
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