Mobile firms claim victory over the landline

Mobile telephony is 'no longer too expensive for ubiquitous use'

Mobile operators in Europe are claiming victory in the battle with traditional landline operators to become the sole provider of voice communications.

"Mobile operators are working to erode the supposition that mobile telephony is too expensive for ubiquitous use," Emma Mohr-McClune, a wireless analyst with Current Analysis in Germany, wrote in an advisory report.

The study noted that operators have successfully launched trials in recent months enticing consumers to cancel their landlines altogether.

O2 and Vodafone have launched services in Germany that offer discounted rates inside the subscriber's current calling area or cell.

In some cases consumers have been provided with a landline telephone number rather than one with a special mobile prefix, offering rates similar to those charged by landline operators.

O2 Germany claims that its Genion service accounts for 72 per cent of its 3.2 million users and allows the operator to realise the top average revenue per user in the market.

Meanwhile mobile operator BASE, a subsidiary of KPN Mobile, has been aggressively pushing towards flat-rate calling plans in Germany and Belgium.

In Germany, BASE has been offering unlimited calls within its network and to fixed numbers at rate of €25 a month.

In Belgium, BASE started offering unlimited in-network calling at the same rate, attracting 40,000 subscribers in its first six weeks after launch.

While the offerings still do not qualify as true flat-rate plans, Mohr-McClune maintained that they are moving closer towards this goal.

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