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Forum Brief: Mobile phone call costs
The Competition Commission has ordered the UK's four mobile phone networks to cut the cost of calls by 22.5 per cent.
Forum Response: Vodafone
Gavin Darby, chief executive for Vodafone UK, said: "We think it is wrong that our customers will be forced to pay more as a result of this report. The UK is one of the most competitive markets in Europe.
"Mobile phone bills have reduced by 70 per cent in the past five years which has been driven by intense competition, with four strong players and a fifth entrant due this year - this is harsher regulation on top of increased competition.
"We believe that the report is fundamentally flawed and, as a result, will be seeking a judicial review to protect the interests of our customers."
Forum Response: National Consumer Council
Gill Bull, acting chief executive for NCC, said: "At last the competition authorities have nailed the mobile phone operators for overcharging their customers. The NCC's campaign for a steep one-off cut in charges has finally paid off for the 31 million UK mobile phone users - despite the mobile operators' delaying tactics.
"Consumers have no alternative but to pay these so-called call termination charges. They are excessive and especially unfair on those who use fixed lines to call mobiles - often the elderly or those on low incomes.
"Now we want to ensure that these cheaper wholesale charges feed through as soon as possible into customer bills. Call termination charges account for two-thirds of the final charges to consumers, so the impact on bills ought to be dramatic. We will be looking for an assurance from the operators that they will play fair on this."
Forum Response: Consumers' Association
Phil Evans, policy advisor for the Consumers' Association, said: "The decision is good news for consumers as it will force the mobile phone companies to be more open and transparent on their real pricing.
"High, and largely hidden, termination charges come as a real shock to any consumer attracted by low up front per-minute rate. You need a PhD in maths to understand most mobile phone tariffs and if you add in a charge that makes no sense and is never advertised you can see why consumers end up confused and overcharged.
"Like the little boy who cried wolf, mobile phone companies appear to want to spend more time complaining about losing their ability to squeeze consumers rather than deal with the consequences of operating in a more competitive market.
"In the meantime, those looking to cut costs on their mobile phone deal should visit www.switchwithwhich.co.uk."
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