On 12 December 2001, Oftel announced its intention to make this reference, as it believes that mobile termination rates are substantially in excess of cost. Oftel has proposed that they are reduced through a charge control of RPI minus 12 per cent for the next four years.

Today's reference begins the formal process in which the Competition Commission has six months to reach a decision, although this can be extended by a further six months.

Because the operators have rejected Oftel's proposals to reduce these charges, Oftel has asked the Competition Commission to carry out its own investigation, and if it agrees that the charges are too high, and consequently against the public interest, whether that can be remedied through regulating the termination charges.