Page 99 - SAMENA Trends - April-May 2021

WHOLESALE UPDATES SAMENA TRENDS

OFCOM Issues Statement on Wholesale Voice Market Review

call termination [MCT] model’ it has said it expects the MTR over the charge control
period to be as follows: GBP0.00371 from 1 April 2022; GBP0.00379 from 1 April 2023;
GBP0.00387 from 1 April 2024; and GBP0.00393 from 1 April 2025. Additionally, OFCOM
has said it will also continue applying this MTR cap for calls to ‘070’ numbers, which
are used for personal or ‘follow-me’ services. For fixed voice termination, however,
OFCOM has confirmed that it will maintain the current cap of GBP0.00292 per minute
‘in real terms’. Separately, OFCOM has confirmed it plans to deregulate the wholesale
market for landline call origination. Although the regulator noted that some phone
companies still use fixed line incumbent BT’s wholesale ‘Wholesale Call Origination’
(‘WCO’) service to enable people to make outbound calls over their landline, it said
that as these providers move to more modern methods of supplying landlines, they
will no longer need to purchase this service from BT. As such, OFCOM expects the
transition to more modern methods to take place by the end of 2025, adding that BT
has offered voluntary commitments to maintain its WCO service in line with current
regulation during that transition period. Nonetheless, the regulator has revealed plans
to regulate IP interconnection such that BT will be required to interconnect on ‘fair,
reasonable and non-discriminatory terms, including prices. Further, OFCOM will also
require BT to publish a timetable for the migration from traditional interconnection to IP
interconnection. To encourage this shift, BT has been ordered to offer interconnection
with its IP network for termination of calls on BT’s network at the regulated termination
British telecoms regulator OFCOM has rate from April 2025. According to OFCOM, such a requirement will ‘provide certainty
published a statement setting out how it to telecoms providers that by April 2025, they will be able to access the regulated
plans to regulate the wholesale markets termination rate for calls to numbers allocated to via IP interconnection, including for
that underpin fixed and mobile calls for the those numbers that may still be held on BT’s traditional network’. As a consequence,
period between April 2021 and March 2026. from April 2025 BT will no longer be able to charge for certain additional services for
In a press release regarding the matter the IP interconnection, on top of the regulated termination rate. Of note though, in terms of
watchdog said that, to continue to protect the next steps OFCOM did note that EU legislation provides two routes under which UK
customers from high prices it had decided providers can secure low termination rates for calls to the EU providers. According to
to cap termination rates for calls made and the regulator, the first can be satisfied by individual UK telecoms providers, where the
received, based on the cost of connecting a second would require the UK Government to make an application to the EU. OFCOM has
call. With OFCOM confirming that the cap said that should the UK Government decide on the second route, it would support it ‘as
for mobile call termination is being reduced necessary’, though said that this may involve having to revisit some of its decisions,
‘to reflect the lower costs faced by mobile specifically the regulation of the termination rates for 070 numbers at the mobile
operators’, it has said the mobile termination termination rate. All of OFCOM’s decisions come into force on 1 April 2021, except its
rate (MTR) cap will fall to GBP0.00379 changes to the caps for fixed, mobile and ‘070’ termination charges, which will take
(USD0.005) per minute in the first year effect from 1 June 2021; this delay is reportedly to allow providers time to notify new
of the market review period (the year to termination rates where necessary to comply with the new rules. In addition, BT will be
31 March 2022), down from the existing given six months to implement the transparency requirements for IP interconnection to
figure of GBP0.00468 per minute. Looking publish (1) a reference offer setting our fair and reasonable terms for IP interconnection,
further ahead, as per OFCOM’s ‘2021 mobile and (2) information on the quality of service of its provision of interconnect circuits.

NBN Co to Lower Wholesale Prices, Boost Coverage for Business-Focused

Satellite Offering

NBN Co has announced improvements businesses across the country would Bandwidth Service Level 3 dedicated
to the NBN Business Satellite Service, now have cheaper access to business- product … This will give businesses
with these including the expansion of grade satellite services, with NBN Co set cheaper access to wholesale speeds of up
coverage to include the entire Australian to lower wholesale prices. The minister to 50Mbps/13Mbps, and also provide the
mainland and large surrounding was cited as saying: ‘In addition to the option of unlimited data to provide the core
islands. In a press release regarding the expanded coverage, NBN Co will reduce connectivity required for critical business
development, Australia’s communications the wholesale price by approximately 40% applications.’
minister Paul Fletcher also claimed that for the Business Satellite Service Access

99 APRIL-MAY 2021