Oftel backs 3G development

By Matt Whipp

Posted on 16 May 2003 at 12:20

Oftel is proposing that roaming regulations between Hutchison and Vodafone and O2 are replaced with those to cover all four UK telcos in order to promote 3G in the UK.

When Hutchison launched its 3G service in March, Oftel imposed regulations to ensure that reasonable commercial agreements were made between the company and Vodafone and O2, to ensure Hutchison customers wouldn't be unfairly penalised when calling across networks. In the early days of 3, this will make up the majority of 2G voice calls from customers.

Without these regulations, the other telcos could turn round and charge £4 a minute for calls terminating on their networks, making life difficult for Hutchison and damaging the UK's nascent 3G market.

On 25 July, the Communications Bill should receive royal assent and become an Act, fulfilling the government's obligation to transpose certain EU Directives into national law. At this point, the current regulations governing the agreements between Hutchison and Vodafone and O2 will cease to exist.

Under the Communications Act, Oftel is recommending that rather than drop the existing regulations, new ones should be imposed to ensure roaming agreements between Hutchison and all the other UK telcos. This should help 3G to grow in the UK.