This autumn we could see mobile phone call costs
falling by as much as 30 % if telecommunications
watchdog Ofcom's demands are met.
This special ruling will follow a three year fight
between the network operators and Oftel (Ofcom's
predecessor) which saw the Competition Commission
and the high court bring in an adjudication on
"termination charges". This is the price
mobile networks charge each other and BT to connect
with their customers.
Originally it was intended to make three annual
cuts in charges in the period to March 2006. Now
it has been decided to make just one cut of inflation
minus 30%.
So this means Vodafone and 02 must cut prices
by 5.63p a minute (from 8p), while T-Mobile and
Orange must reduce them to 6.31p per minute (9.5p).
Overall these cuts in revenue will mean savings
of between £240m and £250m. However,
the mobile firms are under no obligation to pass
on the tens of millions pounds they will save
on connecting customers to other networks.
Andrew Leech, Cross Reference Tel: 01753 884216
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