UK Mobile Regulations Relaxed

The UK's telecoms regulator, Oftel has removed the requirement on Vodafone and O2 to enable third party companies to resell their services. When Vodafone and O2 were originally granted their analogue licenses, they were banned from selling direct to customers and could only sell airtime to third party billing companies who would then sell to customers. The move was supposed to prevent a duopoly between the two networks, although the regulation was relaxed to allow the networks to own billing companies. Now that there are five networks operating in the UK, the regulator has removed the requirement in its entirety.

This is the first market review to be completed by any of the national telecoms regulators under the new EU Communications Directives.

David Edmonds, Director General of Telecommunications said "Because none of the five mobile networks has significant market power in the outgoing mobile market Oftel will withdraw the remaining sectoral regulation that places certain restrictions on Vodafone and O2. This is the last step in the withdrawal of regulation by Oftel over recent years, as competition has increased.

"Operators will have greater freedom and flexibility to offer competitive terms when negotiating with other telecoms companies."

Posted to the site on 7th October 2003