Tesco and Asda are two major supermarkets in the UK and they seem to have taken opposite positions on reducing termination rates.

Ofcom has been warned by Tesco that there will be price hikes for customers if the charges are lowered, whereas Asda is lowering the charge, they say it promotes a ‘level playing field’ between operators. Tesco Mobile, which uses the O2 network is jointly owned by O2 and Teco in a fifty fifty split.

The largely prepay provider advised Ofcom that dropping termination rates would mean a price rise on call tariffs, this would have effects on prepay customers. In the meantime Asda supported reduced termination rates, even though they have a wholesale agreement with Vodafone.

Vodafone is also against lowering termination rates. From the end of July, several firms have made submissions to Ofcom, which were part of a consultation on rates of termination. This would be especially painful for younger customers and low-income households as a lot of these customers rely solely on pre-pay mobile phones.

Source – mobiletoday.co.uk