Thursday, 1 April 2010

Mobile phone termination charges and Ofcom

Ofcom is forcing mobile phone operators Vodafone, O2, Orange, and T-mobile to reduce charges. This time the media is actually noticing that they will likely simply recoup that loss with reduced subsidies for handsets but there's another reason, more significantly, why it's a waste of money for Ofcom to even exist.

Competition between operators is already fierce. Mobile phones and calls are on the whole extremely cheap. One could argue that there are some charges which are still not of a trivial cost such as international charges but there are other organisations that are already putting extreme pressure on our networks. Nokia is one example of an organisation in a much stronger and fairer position to keep mobile networks competitive.

Nokia's N900 phone already allows calls to be made and received over wi-fi without downloading any software (Skype is integrated into the phone's operating system) and works in a full multi-tasking manner i.e. it does not require you have Skype running in the foreground like the Apple iPhone. International calls cost pennies per minute right down to free if you're calling another skype device.

Wi-fi points are everywhere and they are only growing more and more. A lot of wi-fi points in public still charge a premium price but it's only a matter of time before city dwellers unite and share their bandwidth in an open network. Software could manage it. Hundreds of city visitors using small amounts of bandwidth for voice calls could easily pay for a broadband connection and perhaps you get free calls in other cities for opening yours. "The Open Mobile Network" is coming soon and the existing networks will only have control over the gaps inbetween free calls. The incentive to be competitive is overwhelming. Ofcom should concentrate on helping subscribers break free of contracts if the networks are not delivering their promises.

Mobile networks are terrified. Ofcom did not do this.

2 comments:

Anonymous said...

I don't know the full details, but there plans to have full, open wifi coverage in Swindon.

Chris said...

As Anonymous says, I should have added there are indeed plans for town-wide public wi-fi connections in places. I have been in an area in Bristol that already has this.