Ref: 33/00
Date: 3 May 2000

Oftel has today published ‘Towards Better Telecoms for Consumers’, its review of developments in the UK telecoms market over the past year.

The report shows that consumers continue to have a growing choice both of telecoms services and of companies they want to provide them. The overall use of telecoms services has also grown, while prices in many areas of the market have fallen.

Today’s report highlights:

• A growing telecoms market - 84% growth in mobile subscribers, and 180% growth in Internet subscribers. Growth has been aided by the expanding range of products and services, including pre-pay mobiles, and subscription free and unmetered access Internet packages. Internet via TV and mobile should continue to increase Internet usage.

• Greater choice - an increase in supplier choice, including cable, and companies that offer complete rental and calls service using BT’s lines; and ‘indirect operators’ who offer calls using another supplier’s lines.

• More consumers changing suppliers - 1 in 4 consumers have switched their fixed line supplier and a similar proportion their mobile network operator.

• Cheaper prices - the price of calls from mobile phones dropped 17%; whilst calls from fixed to mobiles have fallen 25%.

The report is based upon information published by the industry and other sources over the past year, including consumer research carried out by Oftel.

Commenting on the report, David Edmonds Director General of Telecommunications said today:

"Today’s report clearly shows that UK consumers continue to benefit from a dynamic and flourishing telecoms market.

"The number of companies providing services has increased, the range of services has continued to expand, and prices in a number of markets have fallen dramatically - as a result overall use of telecoms services has grown.

"This report is a useful overview of the UK telecoms market and will assist Oftel in assessing progress towards achieving its goal of achieving the best deal for consumers in terms of quality, choice and value for money."

Note to Editors

‘Towards Better Telecoms for Consumers – May 2000 Progress Report’ is available on the Oftel web site at www.oftel.gov.uk/cmu/toward00.htm. Copies are available to the media from Oftel Press Office on 020 7634 8991 or to the public from Oftel's Research and Intelligence Unit on 020 7634 8761.

Back to Press Release Index