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View Full Version : Mobile Operators Told To Honour Price Cut


krug3r
26-07-2003, 16:34
[SOURCE TIMESONLINE]

Mobile phone operators will have to abide by the 15 per cent price cuts ordered by the Competition Commission, according to Oftel.

The industry watchdog yesterday introduced notices of obligations to ensure that the cuts, which some mobile operators said they would only honour for a day, take place.

The old telecoms regulations which governed the cuts were abolished today by four European directives, which are part of a new Communications Act.

The new framework will provide the basis for regulation by Ofcom when it assumes regulatory responsibility at the end of 2003.

But until reviews by Oftel are completed in the autumn, the notices of obligation requiring current regulations for specific companies will remain in place.

Oftel confirmed that this includes the requirement of the four mobile network operators to maintain their 15 per cent reduction of call termination charges.

The directives have also given Oftel new powers. It will now be able to fine companies that trick people into phoning them back, often on premium rate numbers.

In the past, Oftel could only order a company that sent nuisance text messages offering prizes or money to stop these schemes, but was unable to issue fines.

The new regulations also cover, for the first time, services including interactive TV, text messaging and voice telecoms services.

David Edmonds, director general of telecommunications at Oftel, described today's changes as "a major event".

"Oftel is putting in place a completely new regulatory framework for the UK communications sector," he said in a statement.

"There are a number of significant changes, including the end of the current licensing regime for telecoms companies.

"It is good news for consumers as the measures will encourage greater competition, leading to more choice and lower prices for telecoms services."