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Regulated prices

Ofcom regulates prices, or imposes charge controls, across a number of different segments covering the telecoms, broadcasting and postal services markets. A high-level summary of a selection of these regulated prices and charge controls can be found below. Please refer to the relevant regulatory instrument for the full detail relating to a specific regulated price or charge control.

Note: While we do seek to ensure this page is kept up to date, we do not undertake that it will be so. Please refer to the relevant regulatory instrument if looking to rely upon the figures.

Wholesale prices for Sky Sports 1 and 2

Sky Sports 1 Sky Sports 2 Sky Sports 1 & 2
Wholesale-must-offer price(from 1 Sept 2013) £14.73 £14.79 £20.78

Wholesale prices will track changes in retail prices over time based on a constant absolute (pounds) margin between retail and wholesale prices.

The prices shown apply to Sky Sports 1 and Sky Sports 2 (standard definition).

The wholesale must-offer remedy will apply to high-definition versions of the included channels. However, we have decided not to set a price for supply of these channels. Instead we have included an obligation for supply to be on a fair, reasonable and non-discriminatory basis.


Charge Controls for Local Loop Unbundling (LLU) and Wholesale Line Rental (WLR)

Communications providers which use BT’s copper network to provide wholesale and telephone and broadband services to homes and businesses are required to pay Openreach, BT’s wholesale access division, a fee to access the network for the provision of various wholesale telecoms services. The wholesale charge for such services is regulated by Ofcom where BT has been found to have significant market power in the delivery of these services. On 7 March 2012 Ofcom set charge controls for two such categories of services: local loop unbundling (LLU) and wholesale line rental (WLR) services.

These charge controls were appealed to the Competition Appeal Tribunal by TalkTalk Group, Sky and BT.  As a consequence of these appeals, certain aspects of Ofcom’s decision were found to be in error and to remedy these, the CAT has directed Ofcom to revise the previous LLU and WLR charge controls for 2013/14. These new prices are applicable from 1 May 2013.

Basket/service Charge control for 2013/14 from 1-30 April 2013 Charge control for 2013/14 from 1 May 2013
MPF rental £85.04 £84.26 *
SMPF rental £10.40 £9.75 *
WLR Rental £94.75 £93.27 *
MPF New Provide £45.53 £45.53
WLR New Connection £47.11 £47.11
WLR Transfer £3.39 £3.39
Co-mingling ancillary services basket -0.4% -0.4%
MPF Single Migration £30.82 £30.65 *
SMPF Single Migration/Provide £30.82 £30.65 *
MPF ancillary services basket -5.8% -5.8%
SMPF ancillary services basket -9.8% -9.8%

* Charge changed by CAT direction

The present charge controls on local loop unbundling (LLU) and wholesale line rental (WLR) services apply until 31 March 2014. Ofcom currently expects new charge controls to take effect by July 2014. In order to provide clarity on BT’s pricing arrangements between the expiry of the present charge controls and the introduction of the new controls, Ofcom has published correspondence with BT regarding its interim prices for LLU and WLR core rental services.


Mobile Termination Rates

When fixed and mobile operators offer their customers the ability to call UK mobile numbers, they pay mobile operators a wholesale charge to complete those calls. The rates that operators pay are known as “mobile call termination” (MCT) charges.

Current Mobile Call Termination Charges

Period 1 Period 2 Period 3 Period 4 Period 5 Period 6
1 April 2010 to 31 March 2011 (TAC) 1 April 2011 to 30 October 2011 31 October 2011 to 31 March 2012 1 April 2012 to 10 May 2012 11 May 2012 to 31 March 2013 1 April 2013 to 31 March 2014 1 April 2014 to 31 March 2015
2G/3G Operator
X Value NA NA NA NA NA -46.6% -3.0%
Real Cap (08/09 Prices) 4.180 ppm 2.664 ppm 2.693 ppm 1.735 ppm 1.258 ppm 0.690 ppm 0.670 ppm
Nominal TAC/CAP 4.428 ppm 2.984 ppm 3.015 ppm 2.053 ppm 1.500 ppm 0.848ppm 0.845ppm
H3G
X Value NA NA NA NA NA -46.6% -3.0%
Real Cap (08/09 Prices) 4.480 ppm 2.664 ppm 2.693 ppm 1.735 ppm 1.258 ppm 0.690 ppm 0.670 ppm
Nominal TAC/CAP 4.750 ppm 2.984 ppm 3.015 ppm 2.053 ppm 1.500 ppm 0.848ppm 0.845ppm

Note: all Mobile Termination Rate caps expressed in pence per minute (ppm); TAC is target average charge.

[2] 3G-only MCP


Safeguard cap for Second Class stamps

Ofcom removed the significant majority of regulatory controls on Royal Mail’s prices as part of its review of the regulatory framework for the postal sector concluded in March 2012, However, to ensure that a basic universal postal service is available to all, Ofcom capped the prices that Royal Mail can charge for Second Class stamps up to 2kg. This cap is expected to be in place for the seven years of the current regulatory framework (i.e. till March 2019).

The cap on the Second Class Letter price was set at 55p in 2012, increasing by CPI from 2013 onwards. The cap for Large Letters and packets (up to 2kg) is a control on the maximum level of prices for the basket of products. This takes the form of a basket weighted by volume which allows Royal Mail flexibility to set the prices of the eight individual products within the basket. The level of the Large Letter and packet cap for 2012 was set at an increase of 53% on 2011-12 prices (consistent with the Letter increase), increasing by CPI from 2013 onwards.

Safeguard cap April 2012 April 2013 – March 2019
Letters 55p 55p + CPI
Large Letters and packets 2011-12 average price + 53% + CPI

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Contact Us

Rohit Goel
Analyst Relations and Research Manager

Telephone
+44 (0)20 7981 3000

Email
analyst.relations@ofcom.org.uk