Mobile Phone Reviews
 
 
Mobile Operators Ordered To Cut Charges

Mon, 21 Mar 2011

Mobile phone companies have been ordered to slash their termination rates by UK regulator Ofcom.

The communications watchdog has announced that the amount mobile operators charge their rivals for handling calls to their networks and landlines will fall 80 per cent over the next four years, starting from April 1.

The big three mobile firms - O2, Vodafone and Everything Everywhere, which includes Orange and T-Mobile - currently charge 4.18p per minute to connect calls from other phone companies.

However, the Ofcom ruling means this amount will be reduced to 2.66p next month and will fall to 0.69p by April 2014, although the figure is not as low as Ofcom originally proposed a year ago.

The regulator expects landline operators to pass on the savings to customers and for mobile operators to offer a greater choice of packages.

But there are concerns that phone companies will look to recoup the revenues they will lose from the reduced charges by increasing the cost of calls and other services, particularly for pay as you go customers.

Ernest Doku, of price comparison site uSwitch.com, said: "This is a clear victory against the mobile bully boys."

"In theory, mobile bills should also come down - but in reality, the networks may look to introduce charges elsewhere to make up for the loss in income."
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