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Tesco and Asda go head to head on termination rates

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Tesco and Asda go head to head on termination rates

Two major superstores has gone head to head regarding the termination rates for their mobile phone services. ASDA is in favour for lowering the charges but Tesco is not having it.

Tesco Mobile echoes O2’s position, while Asda is for lowering the charges. Two of the UK’s biggest supermarkets have taken opposing positions on the reduction of termination rates.

Tesco has warned Ofcom that lowering charges would mean price hikes for customers, while Asda is supporting lowering the charge, saying it encourages a ‘level playing field’ between operators.

Tesco Mobile, which runs off the O2 network and is jointly owned by the O2 and Teco in a 50/50 split, has echoed O2’s position in which the operator claimed that lowering termination rates would mean increases for customers.

The predominantly prepay provider warned Ofcom that lowering termination rates would mean a price hike on call tariffs and that the effects of raising prices would have particular effect on prepay customers. Tesco said: ‘Ofcom should consider carefully the impacts on customer segment rather than this spurious impact on new entrants.’

So who do you agree with - Tesco or ASDA? What are you hoping to see from them?

[Via: Mobile magazine]

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