Mobile operators attack Oftel

NEWS Oftel's proposed price cuts for calls to mobile phones have been slammed by the telco industry and sparked infighting between Vodafone and its peers. The cuts amount to a drop of five to eight per cent each year for four years on the price of calls from mobiles or fixed line phones to other mobiles. A spokeswoman from Oftel said: "When you make a call to a mobile phone you can't exercise a choice of network. Oftel has recognised the restricted competition in that area of the market." Vodafone has been the most vocal about the proposed cuts, claiming other companies are accusing it of unfair play due to its profitability levels. A Vodafone spokesman commented: "In our initial submission to Oftel we stated that price caps are not an appropriate form of regulation in a competitive market." However, a statement from Orange highlighted Vodafone's profits and accused Oftel of tarring all telcos with the same brush. The Orange statement said: "Oftel is concerned about 'excessive profitability' of one operator in the market but the current proposal is to regulate all four operators in the same way... it will jeopardise competition because it will have a more significant impact on the smaller players." Oftel's deadline for industry comment is Monday. There is no date set for a final decision from the telco watchdog on whether it will decide the matter itself or refer the matter to the Competition Commission.