Oftel believes that mobile termination rates are substantially in excess of cost. Oftel has proposed that they are reduced through a charge control over the next four years. This week's referral begins a formal process in which the Competition Commission has six months to reach a decision, although this can be extended by a further six months.
Vodafone, BT Cellnet, Orange and One2One have already rejected Oftel's proposals to reduce these charges which is why Oftel has requested the Competition Commission investigation. If it agrees that the charges are too high, and consequently against the public interest, regulation of the termination charges is likely to follow.
Interested parties are invited to comment by 23rd January to [email protected].