By: Luke
3 get set for Competition Appeals Tribunal over Ofcom’s SMP ruling
Daily Telegraph reports -
3 will go to a hearing of the Competition Appeals Tribunal next Monday to argue that Ofcom was wrong to suggest it has “significant market power”.
The company is worried Ofcom’s ruling, made last summer, could see the regulator force it to cut wholesale rates to the levels imposed on its larger rivals.
The regulator exempted 3 from regulation when its parent, Hutchison Whampoa, won the new entrant mobile licence five years ago. However, 3 now has more than 3m subscribers.
Larger rivals claim the rates it levies to connect incoming calls to its network - so-called “termination charges” - are much higher than their own.
The regulator has forced the four main networks to slash the charges. Some analysts say 3’s higher charges are a significant boost to its average revenues per customer.
3 is expected to say its customer base is relatively tiny.
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