Monday, September 15, 2014

BT and mobile operators warn of rising bills if Scotland goes independent

Scotland Yes Vote Sign


On September 18th, Scotland will vote on whether it will break away from the UK. As politicians ready their final campaign strategies ahead of the Referendum for Independence later this week, the UK's biggest telecoms companies have now got involved, warning of the potential consequences of a 'Yes" vote. BT, joined by TalkTalk, Telefonica UK (O2), Vodafone, EE and Three, issued a joint statement this weekend stating that while all parties would remain committed to "investing in high-quality, affordable services" for all of their UK customers, indecision over new regulations and spectrum allocations could force them to increase costs in an independent Scotland.


As it stands, all of the telecoms groups operate and license their networks on a UK-wide basis. If Scotland was to vote yes, it has the right to negotiate its own infrastructure deals, which would likely have an impact on business costs. The country has a relatively low population density, making it harder for BT and co. to further invest in networks that only cover small groups of residents. The group hopes that whatever the outcome, Scotland would adhere to EU rules, ensuring that they can continue operating with some level of continuity, even if they are forced to pass costs on to consumers.


[Image credit: camsinlux, Flickr]

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Source: BT


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