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UK telecom watchdog seeks to put a cap on termination rate

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The pandemic has seriously affected 21 percent of telecoms and IT startups in the country

The UK Office of Communications has proposed a limit on termination rate for calls made and received in the country, a local media reported. By definition, a termination rate is a wholesale charge paid by the network provider to the receiver’s phone company for connection of the call. 

The UK telecom watchdog told the media, “As industry moves away from using the traditional telephone network, we expect companies will increasingly interconnect with each other using the more modern internet protocol interconnection networks. So we have set out how we intend to regulate BT Group PLC’s IP interconnection service.” 

More recently, it is reported that the pandemic is significantly affecting British telecoms and the IT sector. According to a report, 21 percent of telecom and IT startups are facing deep financial problems in the second quarter of 2020. It appears that nearly 4,000 SMEs employing 103,00 people are mired in the pandemic’s distress. That said, the UK government has recently announced that its furlow scheme is set to operate over the next couple of months, media reports said. 

Also, UK telecom operators are expected to incur higher capex on the back of the government’s ban on Huawei’s 5G equipment in the country.

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