No change for UK mobile charges

Ofcom today confirmed that it is holding back from any changes to mobile phone pricing for another year.

The regulator ruled in 2001 that mobile companies must cut the price of connecting to their networks, so-called termination charges.

After a failed High Court challenge by the mobile phone industry, the price cuts of up to 30 per cent were introduced last year and were due to expire in March 2006.

"Ofcom does not propose any change in the other obligations that were imposed in June 2004, which are unaffected by this proposal," said the regulator in a statement.

"Termination charges on 3G networks are currently unregulated and Ofcom does not propose as part of this consultation to change this. At the same time, Ofcom is consulting more generally on how regulation might be applied to this market from April 2007."

Vodafone and O2, which both use the 900MHz and 1800MHz bands, can charge 5.63p per minute, down from 8p per minute prior to September 2004.

For T-Mobile and Orange, using bands at 1800MHz, charges are set at 6.31p per minute, down from 9.5p per minute in September 2004.

The reaction from the mobile phone companies has been mixed. Vodafone said that it was monitoring the situation closely, but O2 spokesman Simon Gordon was more upbeat.

"It is not unexpected," he said. "It actually works in our favour because it gives clarification on pricing for the next year."

There was no indication that the delay was to allow the current dispute between Ofcom and mobile operator 3 to be settled.

3 had not been included in the original price cut order as it was just starting up, but it has been warned that future price cuts will apply. The decision is still being contested.