Posts Tagged ‘cap’

Mobile Phones – Ofcom Calling for Cap to Cross-Network Call Charges

Monday, March 29th, 2010

A recent investigation into cross-network UK mobile phone call charges by Ofcom looks set to revolutionise the way mobile phone carriers charge mobile phone consumers for calls between networks. Almost the entirety of the UK mobile network industry is keen to maintain a free market for call charges, yet Ofcom is seeking to implement a cap from 4p to a maximum of 2p per call.

The result of this price cap could cost the mobile industry upwards of £1 billion, potentially reducing the prospect of future financial investment in the industry. At present the likes of BT get hit by a staggering £750 million phone bill each year connecting landlines to mobile phone networks. A cap would appease this problem, but it would create issues for mobile phone carriers who would likely have to bump up pay-monthly subscriptions and consider scrapping pre-pay methods as a result.