This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7629648.stm
The article has changed 3 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
UK criticises phone fee shake-up | UK criticises phone fee shake-up |
(about 6 hours later) | |
A shake-up in mobile phone charges by the European Commission (EC) may have unintended consequences for consumers, according to the UK telecoms regulator. | A shake-up in mobile phone charges by the European Commission (EC) may have unintended consequences for consumers, according to the UK telecoms regulator. |
European plans to cut phone bills could hurt those on low incomes, particularly people on pay-as-you go tariffs, Ofcom and the UK Government said. | |
Brussels wants the fees that mobile phone operators charge for handling each other's calls to be cut by 70%. | |
But regulators said phone firms may recoup lost income from customers. | But regulators said phone firms may recoup lost income from customers. |
Ofcom and the Department for Business, Enterprise and Regulatory Reform (BERR) published the joint statement in response to the EC's proposals. | Ofcom and the Department for Business, Enterprise and Regulatory Reform (BERR) published the joint statement in response to the EC's proposals. |
They said the aim of cutting the price of calls for consumers should be applauded. | They said the aim of cutting the price of calls for consumers should be applauded. |
However, it warned that plans to change the tariff structure could result in lower bills for the caller, but higher costs for the person receiving the call. | However, it warned that plans to change the tariff structure could result in lower bills for the caller, but higher costs for the person receiving the call. |
"The Commission has been unduly optimistic in assuming that the fundemental changes it has proposed should take effect by 2011" Joint statement, Ofcom and BERR | "The Commission has been unduly optimistic in assuming that the fundemental changes it has proposed should take effect by 2011" Joint statement, Ofcom and BERR |
This could disadvantage lower spending customers, it argued, particularly those on pay-as-you-go tariffs. | This could disadvantage lower spending customers, it argued, particularly those on pay-as-you-go tariffs. |
In June, EU telecoms commissioner Viviane Reding said the current disparity in call termination rates between different countries meant that consumers were being ripped off. | In June, EU telecoms commissioner Viviane Reding said the current disparity in call termination rates between different countries meant that consumers were being ripped off. |
'Regulatory plumber' | 'Regulatory plumber' |
She said call termination markets in the EU needed a "regulatory plumber" to increase competition. | She said call termination markets in the EU needed a "regulatory plumber" to increase competition. |
The UK regulator also said that it has already agreed mobile phone termination rates in the UK until March 2011, and it is reluctant to alter those rates now. | The UK regulator also said that it has already agreed mobile phone termination rates in the UK until March 2011, and it is reluctant to alter those rates now. |
"It therefore appears that the Commission has been unduly optimistic in assuming that the fundemental changes it has proposed should take effect by 2011," it said. | "It therefore appears that the Commission has been unduly optimistic in assuming that the fundemental changes it has proposed should take effect by 2011," it said. |
Mobile firms, for whom termination fees account for up to 20% of annual revenues, are lobbying for more gradual reductions. | Mobile firms, for whom termination fees account for up to 20% of annual revenues, are lobbying for more gradual reductions. |
Earlier this month, Vodafone said it accepted the cost of termination rates would continue to fall, but took issue with the speed at which Brussels was seeking the cuts. | Earlier this month, Vodafone said it accepted the cost of termination rates would continue to fall, but took issue with the speed at which Brussels was seeking the cuts. |
On Tuesday, the EC is expected to announce further measures to cut the cost of using a mobile phone abroad. | On Tuesday, the EC is expected to announce further measures to cut the cost of using a mobile phone abroad. |
The proposals are thought to include a reduction in the cost of text messaging and a price cap on downloading data such as TV shows. | The proposals are thought to include a reduction in the cost of text messaging and a price cap on downloading data such as TV shows. |