13-11-03

Barrett calls for inquiry over text message costs

John Barrett, Scottish Liberal Democrat MP for Edinburgh West, today called on the telecommunications regulator to look into the cost of text messaging following a rise of 30% in just 4 years.

The average cost of a text message in the UK is now 10p despite the cost of handling such a message by phone companies being less than 1p each. Mr Barrett has backed a parliamentary motion, which calls on the Office for Telecommunications, OFTEL, to launch an investigation into these costs to ensure mobile phone companies have adopted a fair pricing strategy. 

In a statement, Mr Barrett said:

"Text messaging is one of the most popular ways for people to contact each other, with 40 million text messages now sent every year.  The use of text messaging for competitions, quizzes and opinion polls has increased their use even more.

"The rise in messaging has become a major money spinner for mobile telephone companies, raising £1.7 billion a year compared to just £100 million back in 1999.  However, the cost to the consumer of text messaging has increased massively, up 30% in just four years.

"The decision by OFTEL to order a reduction in cross network call charges earlier in the year was a major victory for consumers.  However, it's clear to me that an investigation is also required into text messaging to ensure customers are not getting a raw deal."

ENDS

Notes to Editors

John Barrett has signed EDM 1706 "Test Message Charging"

That this House notes with deep concern that the cost of sending a text message has risen by 30 per cent. to an average of 10 pence per message over the last four years; further notes these charges are even higher for text messages sent to premium rate services such as polls, quizzes and sports information and, that with 40 million messages sent each year, this has sent the value of the sector from £100 million to £1.7 billion since 1999; is concerned to learn the cost incurred by the phone companies of handling these messages is less than a penny; commends the works of the telecommunications regulator, OFTEL, and other competition authorities who recently ordered a reduction in cross network call charges earlier this year; and calls on OFTEL to launch a further investigation into the rising costs of sending text messages, to ensure a fair pricing strategy has been adopted by the mobile phone companies and that the rising cost is not as a result of the income lost through the enforced reduction in call charges by the regulator.