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Review of Charge Control of Calls to Mobile Phones

Review of Charge Control of Calls to Mobile Phones. Vince Affleck March 2001. Growth of calls to mobiles (all mobiles excl on-net). Breakdown of BT’s retail of calling a mobile. BT’s daytime price to call BTCellnet/ Vodafone Price VAT BT BTCellnet/ Vodafone

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Review of Charge Control of Calls to Mobile Phones

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  1. Review of Charge Control of Calls to Mobile Phones Vince Affleck March 2001

  2. Growth of calls to mobiles (all mobiles excl on-net)

  3. Breakdown of BT’s retail of calling a mobile BT’s daytime price to call BTCellnet/ Vodafone Price VAT BT BTCellnet/ Vodafone 20p = 3p + 4p + 13p

  4. Review of charge control • Objectives: • to review competitive conditions • Outcomes - Market is • effectively competitive • not effectively competitive -but other factors mitigate need for regulation • market not competitive - regulation required • If further regulation is required • what regulation and what scope

  5. Current Controls • 1998 MMC (CC) recommendations • Charge Control on BT Cellnet and Vodafone • Charges reduced by 25% for 1999/2000 • RPI-9% for 2000/01 and 2001/02 • Control on BT’s retention - now in BT Price Control Review • Controls saved consumers £1 billion +

  6. Competition issues • Calling party pays principle • Consumer outcomes • Consumer behaviour • Market structure • Supplier behaviour • Will competitive conditions restrain charges 2002 -2004 ?

  7. EU Benchmarking

  8. Work to date • Set up industry project teams • competitiveness • LRIC • surveying consumer groups • large businesses • SMEs • residential consumers

  9. Future Time table • 4 May 01 Comments due • 18 May 01 Comments on comments • June 01 Assessment of evidence • July 01 Statement with MMR Statement (& Licence Mods?) • September 01 Ref to CC? • Mar 02 CC Report?

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