Press Release: Telecommunications: Commission asks UK regulator not to include inflated 3G auction costs in termination rates for mobile phone operators

In a letter sent to the Office of Communications ("Ofcom", the UK telecom watchdog), the European Commission expresses concerns as to how wholesale tariffs, charged by the five UK mobile operators for terminating calls to their customers, have been assessed. In the Commission’s view, Ofcom's proposed tariffs keep termination values higher than necessary due to 3G spectrum cost valuations which risk overestimating the costs. The Commission therefore asks the UK watchdog to reconsider the valuations. OFCOM’s approach would be detrimental to fair competition in the UK's mobile market and lead to higher consumer prices for consumers.