And as 3 get ready for their Competition Appeals Tribunal next week…Ofcom yesterday proposed an update to its regulation of mobile termination rates - a move that would have implications for operators using 3G technology.

Over the past two years, Ofcom has forced mobile network operators to reduce charges related to calls connected to second-generation networks after it deemed the rates to be too high.

Ofcom’s current policy doesn’t regulate 3G termination rates, but that policy ends in March 2006. 3G services weren’t included in the original regulation as it was a new technology and Ofcom didn’t want to jeopardize growth in a new market.

Ofcom has a number of options on how to revise the rules. It could decide to maintain its existing policy on restricting termination rates, abandon or amend those restrictions or extend the restrictions to other technologies, like 3G. Ofcom is saying that it is by no means certain that it will decide to regulate 3G termination rates. This last option would of course be in line with Ofcom’s committment not to regulate where possible.

And with 3G still on less than a firm footing, it has been suggested that Ofcom has already contacted the four existing operators suggesting extending the current regime by another year until March 2007.

For 3, if the Competition Appeals Tribunal finds in favour of Ofcom’s ruling on SMP it is likely the opeartor will come under the termination rate rules going-forward.