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 National Orgasm Day: Six reasons (plus one bogus one) why they're good for us
- 2 The 'world's most beautiful vagina' has been debunked by science
- 3 Whoopi Goldberg tells Cara Delevingne to suck it up: 'She's not famous. I'M famous'
- 4 John Green schools morning show hosts after awkward interview with Cara Delevingne
- 5 Doctor Who: Christopher Eccleston says why he left the BBC series after just one series
What turns someone into a conspiracy theorist? Study to look at why some are more 'receptive' to such theories
Whoopi Goldberg tells Cara Delevingne to suck it up: 'She's not famous. I'M famous'
John Green schools morning show hosts after awkward interview with Cara Delevingne
Supermodel Gisele Bundchen mocked for wearing a burka to avoid being seen visiting plastic surgeon in Paris
'Rowdy' Roddy Piper dies: Wrestling legend dies aged 61, according to reports
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Labour leadership contender Jeremy Corbyn says 'we can learn a great deal from Karl Marx'
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Public anger after French sunbather beaten up by gang for wearing a bikini in Reims park
Labour leadership: New poll shows party is now even 'less electable' than under Ed Miliband
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: This is an exciting opportunity...
£13000 - £15000 per annum: Recruitment Genius: Are you passionate about custom...
£22000 - £25000 per annum: Recruitment Genius: Main purpose: Under the directi...
£35000 - £37000 per annum + benefits : Ashdown Group: Contracts Manager - City...