Mobile companies cut cost of calls to rival networks

 

Business digest: Ofcom says mobile phone companies must decrease charges by 80 per cent

LAST UPDATED AT 14:35 ON Tue 15 Mar 2011

Regulator Ofcom has today declared that mobile phone operators must decrease termination charges by 80 per cent over the next four years, starting from April 1.

The ruling – which refers to the amount operators bill rival companies for handling calls from their network – means consumers are set to enjoy lower costs when calling mobile phones from other networks and landlines.

The cost charged by the three leading operators – Everything Everywhere, Vodafone and O2 – for connecting calls from rival networks is set to decrease from £4.18p a minute to 2.66p next month. 3 UK, who have been allowed to charge up to £4.48p per minute, are also set to follow suit.

Since 2007, when Ofcom last introduced capped charges, termination rates have fallen 35 per cent. Small mobile operators are expected to benefit most from the changes announced today.

Read a full report at the Independent. ·