Mobile firms told to cut charges by Ofcom
The cost of calling mobile phones from other networks and landlines is set to become cheaper after Ofcom imposed a reduction in charges.
The regulator ruled today that termination charges - the amount mobile phone companies bill their rivals for handling calls from their networks - will fall 80% over the next four years, starting from April 1.
The big three mobile operators - O2, Vodafone and Everything Everywhere, which includes Orange and T-Mobile - currently charge 4.18p per minute to connect calls from other phone companies.
But this will be reduced to 2.66p next month and will fall to 0.69p by April 2014.
Ofcom said it expects landline operators to pass on the cost savings to customers and for mobile operators to offer more choice to customers.
Mobile phone operator 3 UK can currently charge up to 4.48p per minute, slightly more than the other big operators, but its cap will fall in line with its bigger rivals from the start of next month.
The changes are expected to benefit smaller mobile phone operators, which will be able to offer more competitive prices.
Termination rates have already declined by 35% since 2007 when Ofcom last imposed caps on the rates.
The regulator said that while mobile phone companies will lose money from the reduction in charges, they are gaining from a growing trend towards customers using data services, such as text messaging and accessing the internet from their mobile phones.
Data traffic has more than doubled in the past year and now accounts for the majority of traffic over mobile phone networks, said Ofcom. Revenues from data increased by 90% between 2007 and 2009 and are set to grow further.
The termination rate caps apply only to calls, which are likely to account for a less significant proportion of mobile phone companies' revenues over the next four years, added Ofcom.
- 1 Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
- 2 18th century sex toy found in 'toilet of sword fighting school' in Poland
- 3 US? China? India? The 10 biggest economies in 2030 will be...
- 4 'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
- 5 Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats
General Election 2015: David Cameron catching up in polls – but he badly needs a clear lead
Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
South Africa xenophobic attacks: Shops looted and violence on streets of Johannesburg as foreigners are forced to hide in police stations
18th century sex toy found in 'toilet of sword fighting school' in Poland
'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
The only black face in the Ukip manifesto is on the page about overseas aid
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...