On 22nd January, 2003 the Director General of Telcommunications (DGT) announced that the four UK mobile phone operators will be required to reduce their charges for calls made between the four networks. The announcement followed an investigation by the Competition Commission which recommended that:
Each operator should reduce the level of its call termination charge by 15% in real terms before 25th July, 2003.
O2's and Vodafone’s charges should be subject to a further reduction of RPI-15% between 25th July and 31st March 2004 and for each of the two subsequent financial years (and RPI-14% for Orange’s and T-Mobile’s charges).
The DGT has accepted the Competition Commission’s conclusion on the one-off reduction of 15% by July 2003. Arrangements for the control of termination charges after July 2003 will be considered in a market review to be undertaken by the Office of Telecommunications (Oftel) under the requirements of the new EU Communications Directives.