BT hit with Ofcom ruling blow
January 10, 2011 at 4:31 pm
Ofcom, the telecoms industry regulator, has revealed that BT will not be allowed to go ahead with plans to increase the wholesale charges applied to its broadband and home phone services. BT had hoped to introduce such an increase in order to reduce its pension deficit, with BT currently forced to pay around £525 million each year (a sum that is only likely to rise over the next few years) in order to comply with plans to pay off the hefty deficit.
BT had hoped that Ofcom would go easy on them, hoping that the watchdog would apply the same sort of treatment as that handed in the past to certain companies in the postal, energy, and water industries. Regulators of these industries had in the past allowed deficit recovery payments to be included in regulated charges but Ofcom revealed that there was not enough evidence to convince them to allow BT to introduce a price increase that would see consumers suffer as a result.
A spokesperson for Ofcom revealed that the actions satisfy their “principal duty to further the interests of citizens and consumers by promoting competition”. It seems likely that, although BT certainly won’t take the latest decision lying down, Ofcom won’t be seeking to change their minds on this contentious issue any time soon. BT has stated that they have “strong evidence that pension deficit payments should be reflected” in their costs and are apparently seeking legal advice and considering taking an official course of action through the courts.
EC says mobile broadband roaming charges too expensive
January 5, 2011 at 12:33 pm
Have you ever been stung by high roaming charges when you use your mobile phone abroad? Lots of people have had to face arriving back home from holiday only to receive a huge bill for all the phone calls they made and texts they sent whilst abroad, and it can ruin even the best holidays.
However, things could be about to change for the better.
The European Commission has confirmed that it wants mobile phone companies to completely get rid of the differences in costs between tariffs in their own countries and their roaming tariffs by 2015. That will mean it will cost the same to use your mobile in EU countries as it does in the UK.
Although new rules came in this summer putting a cap on mobile roaming costs abroad of €50, the European Commission was hoping that operators would reduce their charges even further, which didn’t prove to be the case.
The EC will now launch a consultation to speed up the reduction in roaming charges, which will go on until February. A report on roaming charges will then be delivered to the European Parliament in June 2011.
Getting hit by roaming charges can be an extra travelling expense that no one needs. Most people don’t realise they have racked up the fees until they have arrived home, by which time it is too late. If roaming fees are abolished in the next five years in EU member states this will save travellers a lot of money and frustration.
However, don’t forget that any reductions in roaming rates will only apply to EU member states. If you visit any other countries like the USA or Australia then you could still face high fees.
