Ref: 39/03
Date: 27 June 2003

In response to the High Court's judgement handed down today, David Edmonds Director General of Telecommunications, said:

"The High Court has today rejected requests by the three mobile operators to overturn the Competition Commission's ruling backing Oftel's 15 per cent cut in charges for calls made to mobile handsets."

"A major investigation by Oftel found that the mobile operators have been significantly overcharging consumers for connecting calls to their networks. The Competition Commission supported my judgement."

"I am delighted that Oftel's arguments have been totally vindicated and that our processes and those of the Competition Commission have been shown to be fair and proper."

"Today's decision means that the operators must reduce their charges by 15 per cent before 25 July. I am taking steps to ensure the operators maintain these reductions after 25 July. I also propose to require the operators to make further cuts of 15 per cent in each year for the next three years, under the new powers of the EC telecoms Directives."

"These measures will bring major benefits to UK consumers."

"I hope that the three companies, who have lost every challenge to Oftel's analysis and decisions, will now behave in the interests of all those UK consumers who call mobile phones."

Note to Editors

In January Oftel published the findings of the Competition Commission's inquiry into call termination charges to mobile networks. The Commission recommended a one off cut of RPI minus15 per cent to be implemented by 24 July 2003, and three further annual reductions of RPI minus15 per cent (RPI minus14 for Orange and T-Mobile). Oftel modified the mobile operators' licence in April to require the first 15 per cent reduction by July. In April, three of the mobile operators - Vodafone, T-Mobile and Orange lodged an appeal with the High Court to have the proposals overturned.