BT passes on mobile phone cuts
BT confirmed yesterday that it would be cutting the cost of
calling a mobile phone from the beginning of September, to reflect
cost cutting imposed on Vodafone, O2, Orange and T-Mobile by
communications regulator Ofcom.
BT confirmed yesterday that it would be cutting the cost of
calling a mobile phone from the beginning of September, to reflect
cost cutting imposed on Vodafone, O2, Orange and T-Mobile by
communications regulator Ofcom.
According to reports, the cuts could save consumers up to 36%,
while some business calls to mobile phones could be limited to 30p
an hour.
The four mobile operators were ordered to make the cuts following a
long-running investigation into mobile call termination charges –
the set fees that operators charge each other and fixed line telcos
for connecting calls to their networks, fees which they pass on to
the consumer.
Ofcom concluded that direct controls should be imposed on the
charges to operators for terminating calls on the 2G mobile
networks of Vodafone, O2, Orange and T-Mobile. Charges for 3G
networks are not affected and the price cuts imposed will vary
according to the particular spectrum used by the individual
operators.
Vodafone and O2 will be forced to reduce their average
termination charges from around 8p per minute to 5.63p per minute,
while T-Mobile and Orange face cuts from around 9.5p per minute to
6.31p per minute.
The cuts will come into effect between the beginning of
September 2004 and March 2005. Average charges must then remain at
that level until March 2006.
BT announced yesterday that it would reflect the cuts in the prices
it charges to consumers.
"This is great news for our customers," said Gavin Patterson, BT
group managing director for consumer and ventures. "We said we
would pass on all these savings to residential and business
customers and we are doing so."
