Call costs cut at customers' expense

Analysts have warned that mobile phone operators may try to increase charges on data services after they failed to overturn a...

Analysts have warned that mobile phone operators may try to increase charges on data services after they failed to overturn a Competition Commission ruling in the high court last week.

Mobile call costs will be cut by up to half in the next three years after the high court ruled that operators are charging too much for calls between networks. Users can expect a one-off price cut of 15% for services affected by the ruling at the end of July, with phased reductions until 2006.

IDC analyst Paolo Pescatore said, "Prices will fall for corporate users but operators will seek to raise revenue to make up for this elsewhere. They may raise prices for handsets or data services."

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