Orange, the mobile phone operator, has threatened to scale back
investment in third generation mobile technology (3G) if the
telecoms watchdog goes ahead with proposals to cut the costs of
making calls to other networks, according to a report in The
Observer newspaper.
The UK company apparently objects to Oftel’s plan to refer the
price that mobile phone companies charge their consumers to receive
calls from other networks to the Competition Commission.
Orange has accused Oftel of cutting costs in what it considers
to be one of the few areas where mobile phone companies are
profitable. The company warned that reduced profits could force it
to reconsider investment in its 3G network.
A spokesman for Orange told The Observer:
“Our licence commits us to covering 80% of
the population in five years’ time, but to reach that you don’t
need to cover much of the country. You could see the opening up of
a digital divide.”
Oftel insists that charges on calls to mobiles are
“significantly above costs” and denies that the market is over
regulated. The Commission’s decision is expected next month.
