Oftel welcomes High Court judgement on charges for calling to mobile phones

The operators also challenged Oftel’s decision to accept and implement the main findings of the Commission's report, including Oftel’s decision to issue continuation notices which ensure that the level of charges on 24 July were prices on 25 July 2003 maintained continue afterwardsuntil Oftel has completed the current market review under the new EC frameworkprocess. This challenge was also rejected by the High Court.

Following a week long hearing, Mr Justice Moses effectively ruled that Orange, T-Mobile and Vodafone must reduce the wholesale cost of calls to their networks by 15 per cent by 24 July 2003. The operators have since given notice of their reduced chargesprices which have been carried forward under the continuation notices.

O₂ did not appeal to the High Court, having accepted the Commission's findings in January 2003. It has also reduced the cost of calls to its network.

Commenting on the judge's verdict, David Edmonds, Director General of Telecommunications, said "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.

"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."

The High Court decision follows a major investigation by Oftel that found the mobile operators have been significantly overcharging other operators consumers for calls to their networks. The Competition Commission subsequently undertook a separate investigation which supported Oftel's views.

For further information, contact Vince Affleck (tel: 020 7634 8819 / e-mail: vincent.affleck@oftel.gov.uk).