< Back to reports

UK mobile termination rates: down but not out

20 July 2010
Access report

The CC determination on mobile termination rates (MTRs), if implemented, would result in a cumulative 4% reduction in UK mobile industry revenue and EBITDA by the 2010/11 financial year, but a small boost to fixed line industry EBITDA

However, even this cut does not make up for the termination rate cut ‘holiday’ that the UK mobile industry has been enjoying for the last 2-3 years, with MTRs still high in relation to retail tariffs by historic standards

On the positive side (for the MNOs), this means that increased competitive pricing pressure is unlikely in the short term; on the negative side we still expect substantial further cuts from April 2011. These cuts are broadly lagging those in the rest of Europe, so there is no negative read-across for most European MNOs

Recent reports

TikTok on a countdown: Divest or ban bill signed into law

25 April 2024

TikTok has been dealt a devastating blow as a US bill has been signed into law forcing owner ByteDance to sell within a year or face its removal from app stores. 

The stakes are higher than in 2020—China's opposition to a divestment will make an optimal sale harder to conclude, so all sides must be prepared for a ban.   

The TikTok bill introduces extraordinary new powers in the context of the US and China's broad systemic rivalry, though online consumer benefits will be limited.  

Access report

Bundesliga auction suspended: DAZN steps up ambitions

24 April 2024

The German football league has suspended its media rights auction after protests by DAZN over the award of the top package.

DAZN surprised the market by aiming to become the Bundesliga’s primary broadcaster.

The situation in Germany reveals the contradictory impulses weighing on leagues at rights auctions.

Access report

AI, press and licensing: Deals for the chosen few

22 April 2024

Big news publishers are pursuing licensing deals with AI companies, chiefly OpenAI. Not all publishers will see a substantial return; while some news may be important for training AI models, not all publisher content will be.

Litigation is a threat point when negotiations stall (see the New York Times), but the copyright status of Large Language Models (LLMs) is uncertain. In the UK, there has been no government intervention (on copyright or otherwise) that could facilitate licensing.

Publishers’ bargaining position is strongest when it comes to up-to-date material that could be important in powering some AI consumer products. They should seek deals to support their journalism, while bearing in mind the risk that new products may get between them and their readers.

Access report