Oftel today confirmed that BT must cut charges to Vodafone for linking parts of its mobile network.

To date, BT has charged Vodafone at retail prices. But under new European legislation it will have to set so-called "cost-oriented" tariffs.

But what will those be? We guess that BT's notion of how much the connections cost will be rather different from that of Vodafone. So there's some negotiating to be done.

Also, the UK's other mobile network operators will be looking to their BT bills following this ruling - or complaining to Oftel, if BT doesn't play ball.

The regulator published its draft position on BT's charges in January, following a complaint from Vodafone. Today's decision follows the usual time set aside for consultation.

A Vodafone spokesman said the company was pleased that Oftel had "re-iterated its position". It is too early to assess what savings Voda will make following the ruling, he said. ®

Oftel press release