Yesterday Ofcom published a consultation on their proposals for regulating the wholesale markets that underpin landline and mobile telephone calls in the UK.
When someone calls a UK mobile or landline number, the caller’s network provider pays a wholesale charge to the recipient’s phone company for connecting the call. This is called a ‘termination rate’.
Based on the cost of connecting a call, Ofcom are proposing to cap termination rates for calls made and received in the UK.
Some phone companies currently use BT’s wholesale ‘call origination’ service to enable their customers to make calls on their landline. Over the next few years, landline calls will be increasingly carried over more modern, Internet Protocol (IP) networks. Therefore, Ofcom propose to deregulate wholesale call origination, as providers will no longer need to purchase it from BT.
Additionally, Ofcom expect companies will increasingly interconnect with each other using the more modern IP interconnection networks. So, Ofcom have set out how they intend to regulate BT’s IP interconnection service.
This consultation closes on 8 October, and they intend to publish our final decisions before the new regulation takes effect in April 2021.
You can view more information here: