Mobile companies could take Oftel to European courts

NEWS The UK's two largest mobile phone companies could take yesterday's Oftel ruling to cut call prices to the European courts. The telecoms regulator said yesterday that the cost of a call to a Vodafone or Cellnet mobile from a BT phone would fall by 25 per cent when the new law comes into effect in spring. BT owns a 60 per cent stake in Cellnet. Cellnet and Vodafone could challenge the order in the European courts on the grounds that the regulator lacks the authority to make the ruling. Ian Morfett, managing director of BT products and services, explained that an EC directive could put the license changes out of Oftel's jurisdiction. Rival firms Orange and One-2-One have so far escaped the ruling because of their smaller size. Oftel remains convinced it has the power to make the changes and says it will plough ahead with the cuts.