O2 concerns are familiar

Suggestions that consumers on low incomes would be the ones to suffer if plans to change the way in which calls are charged become implemented are familiar and inaccurate, it has been advised.

This is the belief of a spokeswoman for the Terminate the Rate campaign, who was commenting on recent speculation from network provider O2 regarding plans for Ofcom to revise the current frameworks.

She explained it was not the first time someone in the industry had come out against changes to charging structures and in the past these fears had been unfounded.

“These familiar themes were last given a good airing in 2002 when the rates were last being reviewed in detail. The good news is that the rates were reduced by Ofcom then and prices came down and more people than ever use mobile phones,” the spokeswoman said.

Previously, the Guardian reported the network – currently the sole provider of handsets like the new Apple iPhone 3G S in the UK – had made a submission to the telecommunications watchdog, to reconsider such a move.

This was based on the fact that if changes were made to mobile termination rates – the cost operators charge one another for carrying calls – revenues would have to be generated elsewhere.

O2 explained this would mean higher monthly contract fees and handset prices, as well as increases to individual voice calls that would lead to consumers on low incomes being forced out.

It added pay-as-you-go users would also see use-by dates on their top-up credit and that some of the proposals being made by Ofcom were “inconsistent with European and domestic law”.