Prices to fall for landline-mobile calls

5th December 2003, Comments 0 comments

5 December 2003, AMSTERDAM — Calling a mobile phone from a landline will become considerably cheaper from 1 January 2004 following pressure on the industry by supervision authority Opta and competition watchdog NMa.

5 December 2003

AMSTERDAM — Calling a mobile phone from a landline will become considerably cheaper from 1 January 2004 following pressure on the industry by supervision authority Opta and competition watchdog NMa.

The announcement means prices will be reduced in three steps, representing an almost 50 percent fall in tariffs by 1 December 2005.

The lower prices are due to a reduction in the so-called transaction costs — meaning the amount of money a telecoms company charges for the provision of telephone traffic on its own network, news agency Novum reported.

Price of landline-based calls to mobiles will initially fall by about 20 percent on 1 January, giving consumers a total annual saving of EUR 200 million. Subsequent price reductions will take place on 1 December 2004 and 1 December 2005.

The high price in the Netherlands of calling a mobile phone from a landline has long been the subject of criticism. The Netherlands is among the nations with the most expensive transaction tariffs.

The high costs prompted Opta to conduct an extensive inquiry into the telecoms industry, but attempts to reduce prices met with legal resistance. But after taking part in discussions with mobile phone operators, Opta said it was pleased with the price cuts, and the NMa said it would discontinue its investigation of the industry.

KPN said the price reductions will lead to a EUR 65 million fall in profit  in 2004 and EUR 110 million in 2005. But the telecoms firm also expected consumers to make more telephone calls.

[Copyright Expatica News 2003]

Subject: Dutch news

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