This week Ed Vaizey MP, Minister for Culture, Communications and the Creative Industries, responded to a question on Mobile Termination Rates put to him by Iain Wright, MP for Hartlepool. Iain asked if he will bring forward proposals to reduce mobile telephone termination rates; and if he will make a statement.

Ed Vaizey responded:

“The determination of levels of mobile termination rates (MTR) is a regulatory matter for Ofcom. The process for determining the rates is set out in the Communications Act; it requires a market review to be carried out and extensive stakeholder consultation.

“The current regime is due to expire on 31 March 2011 and Ofcom have just concluded a second round of consultation on how rates should be calculated from 1 April next year. Ofcom will publish a statement in the second half of this year setting out the new rates.

“The EU has recently recognised that the UK has one of the lowest levels of MTR in Europe. Ofcom’s proposals aim to reduce this by 85%-down from around 4.3p per minute now to 0.5p per minute by March 2015. This is good news for consumers who will benefit from cheaper calls and increased competition.”

It is encouraging to see such a high profile minister recognising the benefits that low MTRs would bring to consumers in such a public arena.