Financial News

  • 5 June 2014, 10:20

Mobile Phone Call Costs Set To Fall Further

The telecoms regulator is proposing further cuts to charges imposed by mobile phone operators for connecting calls to rival networks.

Ofcom said†mobile termination rates - as they are known - would drop to just half a penny per minute by April 2017 under its plans.

The proposal, which should result in cheaper bills for customers, follows earlier cuts which saw rates falling†from about 25p a minute in 1995 to 0.8†pence currently.

A decade ago, termination rates, which apply to calls†from landlines as well as mobiles, were about 14p a minute.

This wholesale charge is part of the cost of delivering calls that providers†consider when they set retail prices for consumers.

Ofcom competition policy director Brian Potterill said:†"The average cost of a call bundle has fallen from £40†to around £13 in real terms over the last ten years.

"We want to ensure mobile users continue to benefit from competition, which will deliver affordable services in the years ahead."

Ofcom, which said its plans would be finalised by March 2015 following a consultation period, confirmed the rates fall would affect all operators including the big four of EE,†Vodafone, O2 and††Three.

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