TARIFICA Finds Fixed to Mobile Calls Charges Almost Three Times Cost of Fixed to Fixed in Europe

TARIFICA Finds Fixed to Mobile Calls Charges Almost Three Times Cost of Fixed to Fixed in Europe

Business Editors

LONDON–(BUSINESS WIRE)–Sept. 26, 2001

International pricing specialist TARIFICA (www.tarifica.com) has found although fixed to fixed call charges dropped significantly since liberalisation, similar declines have not been evidenced in mobile rates.

TARIFICA’s research has shown long distance and international rates to key destinations dropped by 58% on average over the period with Deutsche Telekom being the latest operator to eliminate the trunk band resulting in long distance calls being reduced by 43%.

However very few tariff changes have occurred in the fixed to mobile rate, despite media attention and the latest comment today from OFTEL, the UK regulator. TARIFICA’s Tariff Benchmarks latest update reveals that in most EU countries, calls to mobiles are twice as expensive as calls to the USA.

The research further reveals calls to mobile phones made overseas from fixed phones have seen the introduction by some operators of a surcharge of up to 50%.

“A caller in Sweden pays three times more for a call to a UK mobile phone than to a fixed UK phone” said Margrit Sessions, Managing Director of TARIFICA. “This differential is huge – the caller in Sweden making a call from the fixed network will pay Euros 0.11 for the first minute of a call to a UK fixed network. But the same caller in Sweden making a fixed call to a UK mobile network will pay Euros 0.32 for the same first minute.”

Tarifica Benchmarks also found with mobile phone number portability, it is now impossible for callers to know what network they are calling and therefore the price they are paying for the call. In the case of mmO2 and Vodafone in the UK, callers to their networks will pay around Euros 0.25. Callers to the Orange and One2One networks in the UK will pay Euros 0.29 and Euros 0.31 respectively. A call to the ‘virtual’ mobile network operator Virgin will cost approximately Euros 0.34.

That means a 10-minute call to the One2One network will be 20% more expensive than a call to the Vodofone or mmO2 network.

TARIFICA is the London-based communications, media and pricing consultancy and a leading brand of PBI Media.

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