Presentation on theme: "Review of Charge Control of Calls to Mobile Phones Vince Affleck March 2001."— Presentation transcript:
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 20p = 3p + 4p + 13p
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
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 +
Competition issues Calling party pays principle Consumer outcomes Consumer behaviour Market structure Supplier behaviour Will competitive conditions restrain charges 2002 -2004 ?