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2002

2002: July


39/02
23 July 2002

MOBILE PHONES INQUIRY

Statement of Hypothetical Remedies

The Competition Commission (the Commission) has written to the four mobile network operators (MNOs), Vodafone, O2 (formerly BT Cellnet), Orange and T-Mobile (formerly One2One) and to Oftel (the main parties), outlining its current thinking on the issues as published on 2 April 2002.

Following the referral from the Director General of Telecommunications (DGT) on 7 January 2002, the Commission has to decide whether the MNOs termination charges (i.e. the wholesale charges made by the MNOs to other operators for terminating calls on their networks) are too high and, if so, whether it is in the public interest for such charges to be regulated. Following the receipt of written and oral evidence from the main parties and third parties, the Commission’s current thinking on these issues is set out in the attached statement (pdf). It must be stressed that the Commission has not yet reached any conclusions on any matter. Further evidence is being submitted and two further rounds of hearings will be held with the main parties. The Commission has until 6 January 2003 to report to the DGT.

The purpose of making this statement of hypothetical remedies public is to give all interested parties an opportunity to put any further points to the Commission that they may wish to raise by no later than Friday 9 August 2002. In particular, comments are invited on the likely effectiveness, cost and practicability of the remedies that have been set out. To submit comments please write to:

The Reference Secretary (Mobile Phones)
Competition Commission
New Court
48 Carey Street
London WC2A 2JT

Or email: mobilephones@competition-commission.gsi.gov.uk

Notes to Editors

  1. The reference was made by the Director General of Telecommunications (DGT) under the Telecommunications Act 1984, on 7 January 2002 (see Oftel Press Release 01/02). The Commission was given six months to complete the inquiry. An extension of six months was granted by the DGT on 23 May 2002.
  2. The inquiry is being carried out by a group of five Commission members led by Professor Paul Geroski, a Commission deputy chairman. The other four members are Nicholas Garthwaite, Diana Guy, Professor Jonathan Haskel and Roger Munson.
  3. Further information can be found on the Commission website: www.competition-commission.org.uk/inquiries/mobile.htm
  4. Enquiries should be directed to: Francis Royle, Press Officer, tel: 020 7271 0242.

Click here to access the statement