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Ofcom defiant over EU charges

26 March 2007
UK telecoms regulator Ofcom will "defy" the EU's ruling on capping mobile phone charges, the Financial Times has claimed.

Ofcom will stick to its own price-controls on how much mobile operators can charge each other for terminating calls made to their networks, the paper reported.

However, Ofcom formally declined to comment.

The EU has criticised Ofcom's suggested cuts to charges on the grounds that the charges would still be too expensive for customers.

Ofcom had calculated its sub-maximal charges based on the cost of 3G licences in 2000, when they were more valuable than they became subsequently, the European Commission said.

Under Ofcom's scheme, O2 , Vodafone, Orange and T-Mobile would be told to reduce their charges to between 4.8 pence and 5.8 pence per minute.

In a related development, the EU media commissioner has made a commitment to look at the issue of the exorbitant roaming charges many mobile customers pay while using their phones in other EU countries.

A price cap on these charges is expected to be introduced in the summer.

To read more about mobile phone tariffs, click here.

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