Saving consumers £800M
Saving consumers £800M is a fallacy. The ultimate ambition of any for-profit company is to pay dividends which increase year-on-year to its owners (investors). There are three ways to do that:
1. Cut costs while the income stays the same, so that a larger proportion of income is clear profit that can be paid out to investors. There is a limit to how much of this you can do before services begin to suffer.
2. Increase income by attracting more customers while costs stay the same, so there is more income that can be paid out to investors. The market is effectively saturated so generally any new customers one network gains are losses to another network and investors are no better off.
3. Increase income by extracting more cash out of the existing customers, so there is more income that can be paid out to investors.
Bottom line is that if they lose £800M in termination fees and still want to keep paying out increasing dividends to investors, they will have to make it up some other way. By method #3 that means consumers in general cannot be saving anything. Some individuals might end up better off, but others will be worse off to compensate.