16 October 2007

MADRID- (AFP) - Spain's competition authority opened a probe into mobile telephone operators Movistar, Orange and Vodafone on suspicion they had reached an agreement to raise their fees, consumer rights group OCU said.

The probe by the CNC authority will look into a "presumed infraction of rules defending competition through the coordinated increase of telephone rates on March 1," the consumer group said in a statement.

The rate increase coincided with the entrance into effect of a new law that banned mobile operators from rounding up bills and obligated them to provide billing by the second, it added.

The three mobile telephone operators agreed to increase their rates at the same time to make up for the loss in revenues that the law would cause, the group contended.

No one at the competition authority, or at Movistar -- which is run by former Spanish incumbent Telefonica -- and Orange -- which is controled by France Telecom -- was available to comment on the news.

But Vodafone, which confirmed it had received a warning from CNC that an investigation was underway, rejected the charge, saying "real competition" existed in the sector in Spain.