Everything Everywhere, which operates the Orange and T-Mobile brands, has reported a drop in revenues due to fee cuts imposed by regulators.

The group announced a 2.5 per cent year on year fall in service revenues to £1.5 billion for the first three months of 2012.

This drop reflected the impact of cuts in the fees mobile operators are now allowed to charge one another. This amounted to around an £80 million loss.

Excluding the impact of the fee cuts, Everything Everywhere's underlying service revenues rose by 2.9 per cent.

Mobile phone operators are forced to levy charges called Mobile Termination rates when non-customers use their networks. In March last year, Ofcom stated it wanted these reduced to 1p or less a minute by 2014.

The group is currently trying to convince contract customers to migrate to data-hungry smartphones, which end up bringing in far more money.

Posted by Peter Robinson

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