Mobile operators selling customers short

Oftel has claimed UK mobile phone companies are still making too much profit and failing to pass the benefits of competition on to their customers.

The telecom regulator's first review of the industry concludes that high profits mean competition in the sector is not fully effective. In particular, it claims UK customers do not get a good deal on international roaming and on calls between rival mobile networks. However, Oftel did find prices in the UK compare favourably with other European countries and that mobile phone prices have fallen by 24 per cent since January 1999. The regulator will now consult industry and consumer bodies before issuing its final conclusions in July. If it finds competition is fully effective it will lift measures designed to boost competition. If not, it will impose further regulations.