uSwitch.com Mobile Phone News

O2: cheap mobile phone deals ‘in jeopardy’

3

Comments
News

Posted 11th August 2009 at 11:02am by Jonathan Leggett

O2 LOGO

Cheap mobile phone contracts could be a thing of the past if the UK telecommunications regulator moves to reduce the cost of calling between networks, carrier O2 has warned.

Ofcom is currently mulling forcing networks to cut termination rates from 2011 and has received strong backing for the proposals from BT and 3.

However, O2, which is the carrier of the UK’s most popular mobile the iPhone 3G S, has now claimed that such a change would have a deleterious effect on consumers because it would force networks to hike prices for mobiles to recoup the lost revenue.

The company’s submission to Ofcom’s consultation also accuses BT and 3 of being motivated by “self-interest” and says that reforms to termination rates could introduce "a risk that the retail markets would be affected in a way that could harm, and not benefit, consumers”.

Since launching the Terminate the Rate campaign has garnered some 700,000 signatures from the public in support of slashing call costs.

More news on: O2, Tariffs & bundles, Business, Cheap mobile phones

3

Comments

3 Comments

  • ME, 12th August 2009.

    I signed that petition. Was it a bad thing then?

    Reply

  • Phill Stiby, 12th August 2009.

    I think "Cheap" mobile contracts are an illusion and no longer exist anyway.

    Its cheaper for me to buy the smart phone I want outright and take out simcard 1 month rolling contracts to get the best deal.... I also benefit from 3 additional factors

    1. Unlocked phone which can be re-sold at a reasonable price in 12-18 months
    2. Not locked into any network, so if a cheaper deal or change comes in I don't like I can change
    3. I'm in control!

    Now is the time to show these networks who is the real boss!

    Reply

  • Jon, 12th August 2009.

    Thing is 3 are one of the biggest losers financially with the current termination rate format but I would argue that they have the best value mobile products in the UK. That contradicts what O2 are saying. I'd also argue that competition is the main factor in driving down mobile prices, for which you've got to credit 3 for making things better for all of us.

    Reply

Add your comment

Please enter your name