According to a recent report the mobile network operator 3 is planning to aggressively market its services to try and increase customer numbers in light of regulatory demands to cut mobile termination rates.

It was announced by the UK’s communications regulator, Ofcom, recently that mobile network operators were going to be forced to cut mobile termination rates, which are the rates that they charge one another for connecting from one network to another. The aim of the measure was to increase competition and to make things more affordable for mobile phone users and landline users that call mobile phones from the landline.

Ofcom said that customers could collectively save millions of pounds as a result of the sharp reduction in termination rates, but the network operators could end up losing money as a result of the measure. This has prompted fears that mobile contract and other deals from mobile network providers could suffer, with consumers having to pay more as a result of network operators trying to recoup the financial losses elsewhere.

However, according to one recent report the mobile network operator 3 has another plan up its sleeve for trying to make up for lost revenue from the reduction of the mobile termination rate. The provider is said to be planning an aggressive marketing campaign and strategy to significantly increase its customer numbers, which would in turn help to boost revenues that have been lost on the MTR.

The termination rate is set to be cut from 4.3 pence to 0.5 pence over the next five years. Following concern expressed by some people with regards to how deals might suffer another mobile network operator, O2, said: “Ofcom is moving one of the key elements in the equation and we can’t just sit by and let this happen. Clearly, we need to change our business model to do something to compensate.”

Source – IT Pro Portal