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08|07|09

Ofcom pledges further consumer protection for mobile users and publishes 3G mobile coverage maps for the first time

Today Ofcom underlined its commitment to competition, consumer protection and investment in the mobile market with the publication of the second phase of its mobile sector assessment. Ofcom also published UK maps of 3G mobile network coverage for the first time.

Ofcom's actions for the mobile sector include:

Sustaining competition in the mobile market

Based on analysis set out in the consultation, Ofcom does not propose to undertake a wider formal market review of the mobile sector. Ofcom will continue to promote and safeguard competition in the mobile sector as the industry changes and innovative technology develops by:

• Monitoring competition between mobile networks to ensure consumers are protected; and
• Maximising consumer benefits from any possible new entrants to the mobile market by ensuring that innovation continues to flourish.

In support of this policy, on 20 May 2009 Ofcom published a review of mobile termination rates - the wholesale charges that operators make to connect calls to each others' networks - and how they should be set after 2011 when the current charging regime expires.

The consultation on mobile termination rates which closes on 29 July can be found at: http://www.ofcom.org.uk/consult/condocs/mobilecallterm/

Robust consumer protection

Ofcom will continue to ensure that consumers are getting the best choice and value for money whilst protecting them in an increasingly diverse mobile market by:

• Continuing to take swift and firm action against companies mis-selling to consumers; and
• Continuing to engage with disability groups and mobile operators to further investigate ways to tackle barriers to access and enable use of mobile services by people with disabilities.

Mobile coverage

Ofcom's recent research shows that consumers are increasingly using mobile networks to access the internet on their computers via a dongle or 3G datacard. There were over two million new connections to mobile broadband between February 2008 and February 2009.

Mobile network coverage in the UK is generally good but some problems persist, particularly in rural areas. Ofcom is focusing on persistent so-called not-spot areas and working where it can to facilitate better mobile coverage.

To help address these problems Ofcom will:

• Assist the Government on its proposals to make more spectrum available for mobile broadband as well as the work to improve 3G coverage on key transport routes;
• Undertake new research to explore for the first time the technical quality of service such as mobile broadband speeds - that consumers receive from mobile devices; and
• Investigate the causes of some persistent mobile coverage not-spots areas of poor or no reception - and work with public bodies to consider how to resolve these issues. This may include providing guidance on ways to overcome coverage issues.

Separately, Ofcom today published for the first time a series of maps showing coverage across the UK by mobile networks using 3G technology.

The 3G mobile coverage maps can be found at: www.ofcom.org.uk/radiocomms/ifi/licensing/classes/broadband/cellular/3g/maps/3gmaps/

Mobile deals: consumer advice video

Also Ofcom has published a consumer advice video today on how to switch providers to get the best deal using price comparison websites, including those that are accredited by Ofcom. These include BillMonitor.com, a service which allows consumers to get cheaper mobile phone deals by monitoring their online bills. BillMonitor.com was accredited by Ofcom on 21 May 2009.

The consumer video can be found here: www.ofcom.org.uk/consumeradvice/approach/pricecomparison/

Ofcom's further consultation on the mobile sector can be found at: www.ofcom.org.uk/consult/condocs/msa

An interactive executive summary where comments on Ofcom's proposals can be posted online can be found at: http://comment.ofcom.org.uk/mostly_mobile/

Ends.

NOTES FOR EDITORS

1. The 3G coverage maps were prepared in January 2009, are based on computer generated predictions and used to establish the mobile operators' compliance with their 3G licence obligations. This data was not collected for the purpose of examining detailed mobile coverage and therefore the availability or quality of mobile services cannot be assumed from these maps. For further information please see the accompanying notes.
2. The consultation builds on Ofcom's initial review of the mobile sector published on 28 August 2008: http://www.ofcom.org.uk/consult/condocs/msa08/
3. The UK has the most competitive mobile industry in Europe with five mobile network operators. The number of mobile phone subscriptions in the UK stands at over 76 million, exceeding the population of 60 million with households now more likely to have a mobile service than a fixed service. Some 85% of the adult population in the UK now have a mobile and it has become the device that we would not leave home without.
4. A changing mobile market
   • Today's consultation is underpinned by new Ofcom research highlighting recent trends in the mobile market and the growing popularity of new mobile services amongst consumers:
   • Data hungry users: Consumers are downloading more data on the move with data service revenues rising from 1% per mobile connection in 2003 to almost 6% per mobile connection in 2008.
   • Flexible SIM-only contracts: SIM-only contracts combine a bundle of voice and text with the flexibility of pre-paid services. The relatively short contracts, of usually around one month, avoid customers being locked into contracts and deliver good deals for consumers. In 2008, there were 1.2 million SIM-only contract sales in the UK which is equivalent to one fifth or 20% of all contract sales during that period.
   • Mostly mobile: People are increasingly starting to give up their landline and rely on mobile devices. Whilst mobile calls increased by 11 billion minutes during 2008, the number of minutes on fixed-lines fell by 8 billion. The number of households with fixed lines has fallen to 85% in 2008 from a peak of 90% in 2007, whilst household take-up of mobiles has remained at about 90% since 2002. Ofcom is ensuring that regulation adapts to take these trends into account.
5. Under section 3 of the Communications Act 2003, Ofcom's main duty is to regulate in ways that further the interests of UK citizens and consumers. In addition, the Communications Act sets out a number of other specific obligations in relation to the mobile sector.

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