Three Brief Spring 2011

8/6/2019 Three Brief Spring 2011

http://slidepdf.com/reader/full/three-brief-spring-2011 1/3



Over the past two years, internet trafficon mobile networks has exploded, withOfcom reporting a 2,200% increasein data traffic on mobile networks in2009 alone. Indeed, Morgan Stanley,Gartner and Ovum all predict thatmobile internet access will outstripfixed PC access during the lifetime ofthis Parliament. It is, therefore, criticalthat Government and regulator fostera competitive mobile market thatsupports the development of the UK’smobile infrastructure.

It is, therefore, critical that Governmentpolicy recognises and supports theimportance of mobile broadband.

Data traffic on mobile networks hasexploded. Ofcom reported a 200%increase in data traffic on mobile networksin 2009 alone, whilst data on the Threenetwork now comprises 97% of all traffic.This trend is placing huge capacityconstraints on Three and the other mobilenetworks. The launch of the iPad is simplythe latest move that heralds a mobile dataexplosion in the UK. There is an urgentneed for additional spectrum to be madeavailable to support the take-up of mobileinternet services.

Mobile internet set to overtakefixed within three years.

Three Brief Spring 2011 Edition.

EDM 714: Mobile Number PortabilityThat this House notes the recent changes to the UK’s mobile numberportability system which Ofcom has introduced; is concerned that the UKremains the only country in Europe where consumers have to ask permissionof their existing provider in order to switch to a new provider; believes thatquick and easy switching is fundamental to competition; and calls on Ofcomto re-examine the issue of recipient-led porting without delay.

Ofcom set to delay improvementsto mobile switching.

Ofcom appears set to delay furtherchanges to mobile number portabilitywhich would have given UK consumersthe same rights as their European

counterparts. Ofcom has indicatedthat rather than adopt a ‘gainingprovider led’ system which puts thecustomer in charge, they are likelyto maintain the ‘losing provider led’system, which gives control of theswitch to the customer’s network.

Ofcom argues that it wants to see howthe recent reductions in the timescales

for mobile switching work before makingany further changes. However, the recentchanges fail to address the fundamentalproblem which is customers having to

ask permission from their provider toswitch networks and take their numberwith them.

The decision also flies in the face ofevidence which Ofcom Chief Executive,Ed Richards, gave to the Public AccountsCommittee at the end of last year whenhe told members that Ofcom believed“the system should overall move from

“losing provider led” to “gaining providerled”, which makes it easier and moreconvenient for people to switch.”

With Ofcom now saying it is unlikely torevisit mobile number porting until late2012 at the earliest, it is critical thatParliamentarians add their voice to thecalls for change now.

MPs can add their support by signingEDM 714 on Mobile Number Portability.

Three Fact:There are over 1 billion Facebookpage views on the Three networkevery month.

Mobile Termination Ratesto drop at last.

Ofcom has announced a significantreduction in Mobile TerminationRates (MTRs) following a widespreadcampaign led by over 60 organisations(including the FSB, NUS, Post Office,BT, Three, Unite and Age Concern).The Terminate the Rate campaignwas backed by over 160,000individuals and 262 MPs who signeda supportive EDM prior to last year’sGeneral Election.

MTRs - which are the charge one

network makes to another for‘terminating’ a phone call - will fall overthe next three years, coming down to

2.6p in 2011, 1.7p in 2012, 1.1p in2013 and arriving at less than a pennyin April 2014.

Although these charges are higher thanthose outlined in the regulator’s originalproposal, and phone users will have towait three years to experience the fullbenefits of low MTRs, this is still goodnews for UK consumers.

We expect the larger mobile operators,who have consistently opposed lowerMTRs, to challenge Ofcom’s decision

so it’s critical that Ofcom continuesto receive widespread support for itsdecision.

New mobile boost forMaidenhead Street Angels.

Earlier this year, Street AngelsMaidenhead, a newly formed groupof volunteers, launched a new schemeto help people stay safe and get homein the early hours of the morning.Backed by Three, the v olunteers areable to stay in touch for free usingSkype on our 3G network.

Three is the only network to offer freeSkype calls to all its customers and withThree’s unique all you can eat data tariff,customers never have to worry about skyhigh bills. Three was, therefore, delightedto provide Street Angels with handsetsand pay as you go vouchers so thattheir volunteers can stay connected andreduce costs.

We hope that by using our 3G network,the Street Angels volunteers can staysafe, reduce crime and help localresidents enjoy their nights out.

If you have local projects in your area thatyou think could benefit from a free mobilebroadband connection please contact: [email protected]

Spectrum.

The first significant step towards buildingthat infrastructure will come in next year’sspectrum auction which will release much

needed new spectrum to meet growingdemand for mobile broadband. It iscritical that the auction is run so that itstimulates competition, drives innovationand extends coverage.

The last spectrum auction in 2000 setout specifically to inject competition intothe mobile market. By ensuring that allfive network operators held roughly thesame amount of 3G (2100MHz) spectrum,and requiring that 3G services operateon this and no other s pectrum, a levelplaying field was created. This stimulatedcompetition between operators resultingin increased 3G rollout, lower prices andinnovation and investment in newmobile services.

However, in January this year, Ofcomlifted the restriction on the use of otherspectrum for 3G services, therebygiving those networks who were gifted2G spectrum in the 1980s and 1990s asignificant market advantage. There is areal risk that, unless the auction addressesthis advantage, competition will bedistorted and the consumer benefits thathave flowed from a competitive marketwill be lost.

Ofcom’s proposals.

Thankfully, Ofcom has consideredthese issues carefully and, in its recentconsultation on the upcoming auction,

it commits to re-establish competitionby guaranteeing to create a marketwith four wholesale mobile providers.Unfortunately, that position is alreadyunder attack from the larger operators andOfcom will need support from a range ofstakeholders to maintain its position.

In the USA, the network with the smallestamount of spectrum has announced it isbeing bought out by a competitor withmore spectrum (and, therefore, a betterposition to compete). There is a risk herein the UK that unless all four players havemore-or-less equal amounts of spectrum,one of the networks will disappear. Thiswould be bad news for competition,coming hard on the heels of last year’sT-Mobile/Orange merger.

Ofcom’s consultation runs until 31 May.If you would like to know more aboutspectrum and its importance in deliveringthe infrastructure the UK will need, pleaseget in touch.



Contacts:If you have any questions about theissues raised in this newsletter, wouldlike a trial of our services, have asuggestion for a Community NetworkProject in your constituency, or wantto learn more about our CorporateSocial Responsibility work, pleasefeel free to contact our team:

Julie MinnsHead of Regulatory & Public Policy

[email protected] 329 329

Simon FellRegulatory & Public Affairs Manager


Jessica TompkinsonCorporate Responsibility & PublicPolicy Manager


1. Do you remember your firstmobile phone?

I do indeed. I got it in 1998, just after I’dbought a classic Saab. I thought buyinga mobile phone would be a sensible

decision as I was always worried that thecar would break down! The phone wasa Nokia and worked so well that it hasinfluenced my choice of mobile ever since.You could take it out of the box and use itwithout needing to look at the instructions– exactly as a mobile phone should be.

2. Do you think you could survive a daywithout your mobile?

I definitely could, though I’m not surehow productive I’d be as a Member ofParliament! I would enjoy the peace andquiet, but ultimately I wouldn’t want myconstituents to be unable to contact me.

3. Do you think mobile technology haschanged the way you communicatewith constituents?

I must admit, I don’t know any other wayof doing so. Almost all of my constituentshave a mobile phone. I meet manyrefugees, homeless people and individualsforced into hostel accommodation asa constituency MP and they all have amobile number which I can use to contactthem. I find this extremely helpful in myrole. Also, my BlackBerry enables me tosee any issues raised by my constituentsimmediately.

4. What more can mobile operators doto support your work as an MP?

Lots of things! First of all, they couldaddress digital exclusion and arrangefor 100% of UK citizens to have access

to broadband. Secondly, they couldmake it easier for me to connect tomy constituents and keep them betterinformed – email is much faster andcheaper than post. Finally, they couldprovide extra capacity for mobile servicesand it is for this reason that I am lookingforward to the forthcoming programme ofspectrum modernisation.

5. Do you think there is a role for usingmobile telecommunications to makeParliament more efficient?

The British Parliament has a very longhistory and we need to keep the mostuseful of our traditions whilst takingadvantage of modern technology. So Ithink there is a role for mobile telecoms insupporting efficient communication withconstituents, and keeping us all informedof what is going on in politics. It alsoshould mean I can work as effectively onthe train as in my office. We have seenthe use of remote voting technologiesfor MP’s votes in other countries but thishas often resulted in poor attendance atParliamentary debates so I’m not sure thatis such a good idea.

6. If you could use your mobile to keepup to date with one issue each daywhat would it be?

I would like to be kept up to date oneconomic growth. It is vital to stay

informed about this issue. Keepingabreast of the number of start-upbusinesses being founded, or technicalinnovations, or orders won by Britishbusiness, or the employment rate are justsome examples of data which is extremelyimportant to me.

7. You’re a busy MP and you spenda lot of time out and about in yourconstituency. What TV programmewould you like to be able to watchon your mobile at any time of yourchoice?

It would definitely have to be Newsnightand Look North, the regional newsprogramme serving my constituency.

8. If Three could give you one video callto anyone in history who would it be?

Without question it would be GeorgeStephenson, the pioneering engineerborn a short distance away fromNewcastle. It would be fascinating tohear how he taught himself engineeringto design and build his locomotives whichwere used in many of the coal mines inthe Tyneside area.

MP3 Chi Onwurah, Labour MP forNewcastle upon Tyne Central.

Three Brief Spring 2011 Edition.

Documents

Three Brief Spring 2011