Telecom group calls for mobile charges cut

The Association of Licensed Telecoms Operators (ALTO) has called on the telecomms regulator to introduce interim prices for fixed-to-mobile calls.

ALTO, the industry group representing telecommunications operators in Ireland, made its remarks following a decision this week by Italy's telecom regulator to impose price reductions on mobile operators.

Italy's regulator (AGCOM) has issued a ruling which will see rates for fixed-to-mobile access charges fall by 34 per cent over three years. A 12 per cent cut will take effect from June. Italy's regulator estimates that the ruling will lead to savings of over €270 million.

This development in Italy comes after the recent decision of Britain's telecom regulator (Oftel) that mobile operators must cut their charges by up to 30 per cent this year.

ALTO says that access charges, the cost charged by a mobile operator to a fixed-line operator for a call from a land line to a mobile phone, represent a cost of over €300 million per annum on the Irish telecomms industry.

"This week's decision by the telecoms regulator in Italy, following last month's action in the UK, shows that regulators across Europe are now tackling this issue head on," according to the chairman of ALTO Mr Iarla Flynn.

"Consumers in Ireland should not have to wait for reductions in their call charges. We believe the regulator should set interim rates immediately for the two dominant operators in Ireland [O2 and Vodafone] to give consumers maximum benefit as soon as possible," he added.