This consultation follows our Wholesale Mobile Voice Call Termination Market Review consultation published on 1 April 2010 (the 'April 2010 consultation'). The April 2010 consultation was part of our review of the markets in which mobile call termination on individual mobile networks is supplied in the UK.
In the April 2010 consultation we proposed to impose a SMP condition setting a charge control on Everything Everywhere, Vodafone, O2 and H3G. We did not propose to impose a charge control on other mobile communications providers (MCPs) who do not operate national radio access networks, such as smaller providers and those offering mobile VoIP services using mobile numbers. For these providers, we proposed that the SMP condition, which requires network access and interconnection to be provided on fair and reasonable terms and conditions (including charges), would apply .
We recognise that negotiations relating to mobile termination rates which are not subject to a charge control may give rise to potential disputes as to what constitutes a fair and reasonable rate in individual circumstances.
Ofcom has certain dispute resolution powers pursuant to sections 185-191 of the Communications Act 2003 (the 2003 Act). Where a dispute which is submitted to Ofcom meets the requirements of section 185, and Ofcom does not consider that there are appropriate alternative means for resolving the dispute, Ofcom is required to handle and resolve the dispute within four months except in exceptional circumstances.
We recognise that given the short timescale for the resolution of disputes, the process can be a demanding one for stakeholders in terms of both time and resources, especially for smaller stakeholders whose resources are limited.
In this consultation we set out for comment draft guidance on how Ofcom would be likely to assess what is a fair and reasonable mobile termination rate if called to do so in a dispute. We believe that this will be useful for stakeholders, both in terms of their negotiations with respect to mobile termination rates and preparation for any dispute resolution should those negotiations ultimately fail.
We recognise that any dispute would have to be considered on its specific facts. This guidance is therefore intended to provide a framework for assessment, and an indication of the factors Ofcom would be likely to take into account. It does not purport to provide a definitive answer to any individual set of circumstances.
Section 2 of this document sets out our proposed guidance on how we would assess what constitutes fair and reasonable mobile termination rates, should we be asked to do so in the context of a dispute submitted in accordance with section 185 of the 2003 Act.
Annex 4 sets out information on technologies and business models that are currently used to provide mobile voice services. This provides relevant background to our proposed guidance in Section 2.
We seek responses to this consultation by 18 February 2011.