Tuesday, March 15, 2011

Mobile firm charges cut by Ofcom

The telecoms regulator, Ofcom, is cutting the fees that mobile phone operators can charge other firms to connect calls to their networks.

Ofcom said that it expected the reductions to be passed on to consumers.

From 1 April, Ofcom will cap the so-called termination rates charged by all four national mobile network operators.

The regulator said that this should lead to about an 80% reduction in termination rates over four years.

Lower termination rates will reduce the cost to landline companies of passing calls to mobile phones.

Currently, mobile operators charge between 4.1p and 4.4p to the cost of delivering a call to another network.

This will now be reduced in phases, to 0.69p by 2014-15.

Ofcom said that termination rates have become a less important revenue-earner for mobile companies.

This is because of the way consumers use mobile devices, with data traffic - such as messaging - rather than voice calls growing rapidly.

Termination rates only apply to voice calls.



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