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

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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 ?

EU Benchmarking

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

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