Analysys urges fixed-to-mobile rates rethink

Reducing the high charges for fixed-to-mobile calls should be Oftel's next regulatory target, according to telecoms researcher Analysys.

Launching the company's latest report, Mobile Market Leaders, David Wilkins, senior analyst with the firm, said: "Fixed-to-mobile rates are "inordinately" high. There's little justification for charging such high prices, and there's little regulatory pressure at the moment".

In April, BT cut its mobile rates by up to 25 per cent after Oftel said its charges were too high. However, this month BT nudged prices back up by between five and 50 per cent.

"There is some pressure coming from Europe, but Oftel has supported BT. It imposes costs to explain the prices but nobody really knows what these costs are. The imposed costs for mobile connection are very clouded," he said.

Wilkins said that the fixed-line operators are not the only ones that are at fault. "Mobile operators also charge too much for receiving fixed-line calls," he said.

Price fluctuations on calls from mobile to fixed-line phones had been already reduced until they reached a level with fixed-line calls, he added.

Danny Williams, co-author of the report, predicted that prepaid mobile phones will eventually grab the attention of UK businesses. "Business prepaid is coming soon. In Italy, corporates are already making deals with operators for prepaid services, but it is taking time in the UK."

While BT Cellnet has a prepaid service for businesses, takeup has been slow. Williams said: "It might take time but, like EasyJet airlines, prepaid will shake off the image of a poor man's service."