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Old 10-07-2009, 22:46   #5
m419
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Join Date: Jul 2005
Location: London
Services: BT Broadband,BT Anytime calls,Sky entertainment extra HD,Vodafone pay monthly
Posts: 1,512
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Re: Terminate the rate

This is an attempt to force out Deutsche Telekom (T-Mobile UK) out of the UK telecoms market. T-Mobile has already seen a huge loss in revenue, when 3 launched in the UK,T-Mobile lost a lot of custom to it, T-Mobile also lossed many pay as you go customers when O2 launched unlimited text bolt ons and when vodafone launched schemes such as stop the clock.

BT has had many disputes with T-Mobile over the last few years,most of which were in fact to do with termination rates. BT also discontinued using T-Mobile's network for BT Mobile and wirefree services. T-Mobile also had problems with BT over termination rates and about the rates BT wholesale charges T-Mobile for connecting with other networks,one of which was a voip mobile service called Mobiboo, this resulted in T-Mobile blocking calls to numbers begining 07911. You will also notice that many 118 numbers cannot be accessed from T-Mobile's network.

3 want a bigger market share, and Hutchison see T-Mobile as the weakest link as they are the smallest out of the big 4 (O2,Vodafone,Orange and T-Mobile).

T-Mobile will probably find it difficult to reach break even if termination rates where dropped or scrapped and 3 has seen this as a good shortcut to squeezing them out so it can get a bigger market share and maybe take over T-Mobile's UK operations.

T-Mobile depends on termination rates especially when it comes to Virgin Mobile, Virgin Media has reduced the cost of using T-Mobile's network and termination rates is the main income for virtual mobile network side of T-Mobile's business.

Vodafone is also planning to get its hands on T-Mobile UK, this is likely to fail due to competition issues, however in Austrailia, Hutchison and Vodafone have teamed up and Vodafone Austrailia and 3 Austrailia are 50/50 joint ventures between Hutchison and Vodafone even though they trade under there own brand names. If this was to happen to 3 and Vodafone in the UK, it could mean that Vodafone,3 and T-Mobile be one company. However, 3 and Vodafone would retain there brands.

BT and 3 will get there own way and by maybe 2010, you'll see cheaper calls and improved 3G coverage.

Why else would 3 want to get rid of termination rates when they charge the highest rates out of all of the UK mainland networks???
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