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Charges for calls from landline to mobile phones may be lowered

Calls from landline connections to mobile phones may become cheaper. The tariffs which KPN charges for the use of its fixed network will drop by eight cents a minute during peak hours and five cents at off-peak times. OPTA has approved the proposed reduction, which will only affect that part of any calls which is carried on KPN’s network. In the weeks ahead KPN will be negotiating potential price reductions for mobile call components with the mobile operators. Competition will also increase amongst providers in this area.

When a call is made from a landline to a mobile phone, it is carried over two networks. First the call travels ‘underground’ through KPN’s network. After that, the signal then moves through the air via the relevant mobile operator’s network. Both KPN and the mobile operators levy charges for this. The charges for the first section (KPN) will therefore now be lowered. The charges for the second section may vary from one mobile operator to the next. Added together, these two sets of charges represent the amount that consumers are required to pay. In the future different tariffs may be charged for calls from landline to mobile phones depending on the mobile network which is called. It is anticipated that the new consumer charges will come into effect in mid-June.

Calls to mobile phones from a KPN fixed connection may drop from 75 to approximately 67 cents a minute during peak hours and from 50 cents to about 45 cents in the off-peak hours. The precise reduction will depend on what the mobile operators do in relation to their part of the charges.

Mobile phone operators can distinguish themselves from each other by charging a different tariff from their competitors for the second call component. Calls from a landline to a particular mobile operator would then be cheaper than to other such providers. OPTA anticipates that such price differentiation will lead to mobile operators competing with each other on price. As soon as the new consumer tariffs are known, it will become clear to what extent the mobile operators have also adjusted the charges for their part of each call.

Calls from a fixed telephone connection to a mobile phone may become cheaper. The charges which KPN levies for using its fixed network will drop by eight cents a minute during peak hours and five cents at off-peak times.