Brussels, 28/11/2006 (Agence Europe) - In a letter sent to the Office of Communications ("Ofcom", the UK telecom watchdog) on 22 November, the European Commission expresses concerns as to how wholesale tariffs, charged by the five UK mobile operators (2G/3G operators O2, Orange, T-Mobile and Vodafone, and the 3G operator Hutchison 3G) for terminating calls to their customers, have been assessed. In the Commission's view, Ofcom's proposed tariffs keep termination values higher than necessary due to 3G spectrum cost valuations which risk overestimating the costs. The Commission therefore asks the UK watchdog to reconsider the valuations. OFCOM's approach would be detrimental to fair competition in the UK's mobile market and lead to higher consumer prices for consumers. "I am concerned that Ofcom's approach to calculate 3G spectrum costs could hinder the movement towards lower mobile interconnection prices." said Information Society and Media Commissioner Viviane Reding. “The Commission believes that such costs should not be calculated on the basis of prices paid during the spectrum auctions, which are in today's context inflated. Otherwise, distortions of competition and higher prices for mobile customers could be the result”. She is therefore asking OFCOM to reassess their method of calculating mobile termination rates in the UK. (ol)