Mobile Call Termination in the UK

The authors discuss policy towards mobile call termination, illustrated by the 2002 Competition Commission enquiry into the UK mobile market. They present a model of the mobile market which includes both fixed-to-mobile and mobile-to-mobile call termination. In broad terms, the former service is likely to involve monopoly pricing if left unchecked, while the latter service - if the termination charge is jointly chosen by networks - may provide the mobile sector with the means by which to relax competition. Competition is often relaxed by choosing a low mobile-to-mobile termination charge.