Mobile phone charges to fall under Ofcom plans

bealtine

http://news.bbc.co.uk/2/hi/business/8598181.stm

Callers to UK mobile phones could see cheaper bills from 2011 under plans announced by telecoms regulator Ofcom.

It has proposed cutting the cost mobile phone firms can charge for connecting a call from another network from 4.3 pence per minute to 0.5p by 2015.

Ofcom has also issued new rules to make it quicker and easier to switch mobile phone providers.

Customers should, by 2011, be able to change mobile providers in one working day rather than two.

In addition, mobile phone companies will have to issue users with the Pac code they need in order to keep their existing mobile number by text message within a maximum of two hours, Ofcom said.
Currently, some mobile phone companies only issue these codes by letter, which can mean switching takes several days.

But the move did not go far enough for mobile phone operator 3.

"The UK is the only country in Europe where you have to ask permission from your current operator to leave and take your mobile number with you," a spokesman said.

"[In other countries,] consumers benefit from near-instant porting and don't have to ask permission to move their number."

Ofcom research shows that 70% of customers want to keep their mobile number when they change providers.

Europe leads

Both sets of proposals are subject to short consultations later this year.

On the issue of mobile phone charges, Ofcom said the changes would mean cheaper calls to mobiles for the more than 32 million households and firms with a landline.

Ofcom predicts consumers calling mobiles could save a total of £800m over the four-year period the charges have been set for.

While BT welcomed the decision, it expressed concern that consumers and businesses would not see the full benefit of lower rates until 2015.

"In this case, what is being proposed is just the elimination of excessive prices and the mobile operators have had plenty of notice that termination rates are likely to fall," the company said in a statement.

Ofcom's latest proposals follows instructions from the European Commission last year that charges should reflect only the cost of establishing connection.

These fees, called termination charges, have fallen substantially as mobile phone usage has grown. In 1995, the cost was 23p per minute, Ofcom said.

bealtine

I find it sad and fascinating that the same set of regulations can be used by Ofcom to enforce various policies (some to the benefit of consumers) and the very same regulations are an excuse for our sorry assed regulator to do absolutely nothing whatsoever.

watty

However in the past Ofcom opposed EU attempts to bring down phone charges and sided with the operators. So I'm not sure what is going on with this. Perhaps something to do with BT and fibre (a sweetner for BT due to imposed wholesale terms on their fibre, duct and pole sharing?)

Tom Young

Actually, ComReg has announced 47% reductions by way of legal undertaking here in Ireland. These take effect this month, they don't go far enough, but we'll see.