Mobile Termination Rates (MTRs) are the fees charged when you call a friend on a different mobile network, or call their mobile from your landline. In doing so, the other mobile network charges your operator a fee for carrying the call. But it's you who pays the price.
A campaign supported by Three, BT and many others has played its part in a decision by Ofcom to reduce MTRs further. MTRs have fallen from around 4.7p per minute in 2010 to around 3p per minute as of April 2011 and these charges will continue to fall to around a penny or less by April 2014.
Terminate the Rate Campaign.
We want to make the mobile phone industry fairer and better value for everyone. Historically MTRs have been charged at an inflated rate. Operators have always passed this connection charge on to their customers bumping up the cost of calling mobiles. In 2008, landline consumers alone spent £750m on MTRs, more than £2m every day.
We wanted Mobile Termination Rates to be reduced, and to reflect what they actually cost – less than a penny. This would make the market more competitive and allow customers to get better deals.
To stand up against unfair MTRs and lobby for change we, alongside BT, moneysupermarket.com, the Federation of Small Businesses, Carers UK, the GMB (Britain’s General Trade Union) and the NUS, launched a campaign called Terminate the Rate in May 2009. Our aim - to lobby industry regulator Ofcom for a significant reduction in termination rates by April 2011.
Since launch, the campaign has received fantastic support. The number of supporting organisations soared to over 65 including the Post Office, Unite, Age UK, Macmillan, Crossroads Care, Royal College of Nursing and the Plain English Campaign. 262 MPs signed an Early Day Motion calling for low MTRs and 161,000 members of the public signed our petition.
What did Ofcom say?
In March 2011, Ofcom announced their final decision: to reduce MTRs to around a penny or less by April 2014. Although the final rate is what we campaigned for, UK consumers still have to wait three years to receive the benefits. We would have liked to see this implemented immediately and the rate reduced even lower, but in the long term this is still good news for UK consumers.
How will we pass on the benefits of low MTRs?
We already have done. In anticipation of Ofcom’s decision laid out in April 2010, Three launched The One Plan and brought the benefits of low MTRs to customers ahead of a final decision as we didn’t want them to have to wait. The One Plan offers 2000 minutes to any network as well as 5000 Three to Three minutes and all-you-can-eat data for £25 excluding a handset. Ofcom’s confirmation that MTRs will be reduced has secured the future of The One Plan.
The scope for bigger bundles of minutes will increase across our price plans as MTRs continue to fall and competition increases.
Please find Three's mobile termination rate charges here.
