Tag: mobile call charges

Price Sensitivity and Bill Shock

In my earlier blog, Bill Shock, I recounted the story of a young woman who had been treated to a bill of £27,000 after losing her phone overnight.  This prompted me to look at the relationship between price and usage.

Data on cost and usage of international roaming traffic, especially data traffic, is not widely available, but that for domestic traffic is more readily available. Prices and usage for domestic mobile calls vary considerably between countries, which permit comparison of any relationships between the two. Continue reading “Price Sensitivity and Bill Shock”

Mobile Termination Rates

Ofcom has announced lower mobile termination rates (MTRs) than expected. In fact significantly lower by the end of the five year period, down from 4.3p to 0.5p per minute.
Doubtless the major mobile operators will protest, as it will effectively reduce their income. Under the current system they derive net income from smaller players, fixed network operators, and call charges to their customers. Smaller players such as 3, which has been campaigning for lower charges, will welcome it, as MTRs represent a significant net cost to their businesses. Continue reading “Mobile Termination Rates”