Elizabeth Judge, Telecoms Correspondent
Attend a special evening hosted by Mike Atherton
Vodafone mounted a legal challenge yesterday to plans by Ofcom to allow users of mobile phones to take their existing number to a rival network within two hours.
Last year the telecoms watchdog announced rules that would enable customers to transfer their existing mobile number to a new network within two days by this April. The process is to be cut further, to two hours, by 2009. The present transfer process takes five days.
The new regime was aimed at encouraging more people to change operators and take advantage of more competitive deals. At present, Ofcom believes, mobile users are being deterred from switching because of the slow and complicated transfer process.
Vodafone said that it had lodged a complaint about the rules with the Competition Appeal Tribunal. It claims that the new system is unnecessary. Quicker switching times could, it argues, lead to an increase in mis-selling scams, in which customers are switched to a new network unwittingly.
Its main complaint involves the cost of introducing the revised system. As part of the change, Ofcom has demanded that the phone operators create a central database that will hold details of all switched numbers and enable calls to them to be routed directly, without having to rely on the subscriber’s previous network provider. Ofcom estimates that the database would cost the industry £12 million. Vodafone believes that the figure would be closer to £24 million.
Nine years ago British mobile phone users were among the first to be able to switch to a rival network while keeping their old number, but now Britain lags behind many countries with its long-winded switching process.
Research by the telecoms regulator found that half of those who had switched said that the process could be improved.
Yesterday 3, the smallest of the five network operators, condemned Vodafone’s attempts to stall the overhauled system. A spokesman said: “Making it easier and quicker for consumers to transport their number has been continually obstructed by the incumbent operators at the expense of the British consumer. We owe it to them to move on this now.”
It is likely that Vodafone will be questioned about its actions today when it delivers a trading update on its performance during the Christmas period.
Analysts at Citigroup are forecasting that the third-quarter report will reveal continued strong growth from data services, such as the viewing of videos and downloading of music on handsets. Strong growth from emerging markets, such as India, is also expected.
Citigroup forecasts a 3.8 per cent rise in total service revenues and growth from the European data business of 40 per cent.
In a recent broker note, JPMorgan also predicted that Vodafone would shrug off recent economic worries to report a small acceleration in like-for-like service revenue growth.
Industry sectors news at a glance. Interactive heatmap, video and podcast
Everything the Business Traveller needs to know to make a better trip
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
Growing demand for energy, oil that is harder to reach and the rise of carbon dioxide emissions. We examine the energy challenge
With rail travel in Europe on the rise, we review the benefits of travelling by train
In this special section we explore new food trends to help improve your dinner party and impress guests
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
1998
£47,955
12 months for the price of 11 and a 5% discount.
Offer ends 31/11/09
Check your free Experian credit report before applying
Car Insurance
£353 per day
Phonepay Plus
London
PwC’s Consulting practice helps businesses of all shapes and sizes work smarter and grow faster
PwC
£37,000
Department for Culture, Media and Sport
London
Currently £36,285
Department for Culture, Media and Sport
London
Moments from Battersea Park.
For sale with Winkworth
Find out about shared ownership.
See your free Experian credit report beforehand
Accommodation, flights, tickets to the race and a KL city tour for only £999pp
PremierHolidays.co.uk
For your ultimate tailor-made ski holiday, click here
Get covered on your travels with a superb range of policies at great prices. Visit InsureandGo.com
World Class Golf, Spa and preferential Beach Club. Private estate overlooking West Coast
Villas from £275 per night inclusive of Golf
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.