Ofcom Call Termination Review – what it means for service providers

Posted on: 5th May 2026, by Magrathea

Ofcom has recently published its latest statement following the Review of Call Termination Markets and End-to-End Connectivity Conditions. This review takes place every five years and determines which elements of the voice market remain regulated, and how.

As expected, there are no major surprises this time. The most significant changes were introduced in the 2021 review, and this update is largely a continuation of that direction.

 

Termination rates

The conditions around fixed termination rates (FTR) and mobile termination rates (MTR), the maximum charges networks can apply to terminate calls to their number ranges, have remained unchanged.

The rates themselves will increase slightly in line with inflation from 1st June this year, and will then be adjusted annually each April for the remainder of the review period.

 

Single point of interconnect

One useful clarification that perhaps wasn’t fully understood since it was introduced five years ago, is that all range holders must now make FTR available at at least one single point of interconnect.

In practical terms, this reduces the need for complex and costly network structures with multiple interconnect points simply to access the best rates.

It is also a reminder that even where number ranges are hosted on another network, the responsibility still sits with the range holder to ensure that termination is available to interconnect partners at a single point.

 

070 numbers

070 personal numbers remain capped at the same rate as mobile termination.

Ofcom acknowledges ongoing concerns that reductions in wholesale costs have not consistently been reflected in retail pricing. A number of respondents pushed for further intervention, and Ofcom has confirmed it is continuing to consider its options.

Magrathea are separately calling for reclassification of this range and hope to share more updates on that later this year.

 

Call surcharging

The call surcharging regime introduced in the previous review will remain in place.

Ofcom’s view is that the framework is working as intended, helping to promote lower prices for consumers. There are, however, some minor adjustments:

  • Reduced administrative burden around updates
  • Greater flexibility to use a country’s regulated rate rather than a specific provider’s rate
  • Extension of surcharging rules to roaming non-UK mobiles

 

Removal of the End-to-End Connectivity Condition

The most notable change is the removal of the End-to-End Connectivity Condition previously imposed on BT Group.

Historically, this required BT to act as a “carrier of last resort”, ensuring there was always a route for calls to reach any number by requiring them to purchase termination from all range holders – of which there are currently 237 for geo ranges alone!

Ofcom’s view is that this is no longer necessary. The combination of a more developed transit market, increased interconnection between networks, and existing regulatory obligations reduces the risk of calls failing due to lack of connectivity.

In our response to the consultation, we urged some caution. In practice, establishing interconnects, particularly with larger carriers, can still involve commercial and technical challenges. These can be time consuming and may act as a barrier for smaller providers.

Ofcom has acknowledged these concerns and confirmed that it will monitor the impact of this change, alongside compliance with the General Conditions.

 

BT’s ongoing obligations

While this specific condition has been removed, BT still holds a unique position in the market.

Ofcom notes that BT continues to have a significant share of interconnects, estimated at around 40 to 45 percent, and does not consider the transit market to be fully competitive.

As a result, BT remains subject to key obligations, including:

  • A requirement not to discriminate between customers
  • The obligation to provide equivalent wholesale services to those it provides internally
  • The publication of a Reference Offer to ensure transparency

 

In summary

Overall, we do not expect these changes to have a material impact on most clients.

As always, we will absorb minor cost changes where possible. Where any adjustments are required, we will communicate these in the usual way. We will also continue to manage surcharge-related complexities on your behalf, ensuring you retain clear visibility and control over your costs.

If you would like to review the full statement, you can find it here, or feel free to contact us to discuss any of the points raised.