Oftel criticise high mobile phone call costs

UK telecoms regulator Oftel have criticised the cost of calls to mobile phones.

In a review of mobile phone costs telecommunications regulatory body Oftel singled out Vodafone and BT Cellnet (MM02) as having high call prices. Oftel is to impose controls on charging structures in a bid to curb call costs.

Oftel has also extended price controls on mobile phone calls made from land lines to cellular phones, a move that is set to save consumers an estimated £800 million over the next four years.

Also for the first time the restrictions have been extended to one2one and Orange systems.

Calls to mobile phones are up to three times more expensive than those to a fixed landline phone, and Oftel says consumers have yet to see the benefit of a fall in the operation costs of mobile phone companies.

Oftel’s announcement was welcomed by consumer organisations who have been seeking a reduction in mobile phone charges.

Increasing competition among mobile phone operators has led to a reduction in the cost of cellular phone calls by about 30 per cent, but Oftel’s report concluded that there was no effective competition between BT Cellnet and Vodafone. This was leading to higher call charges than might be expected in a truly competitive marketplace. (SP)