01/04/2010

Cut In Mobile Call Costs

The UK telecoms regulators has called for a cut in the cost of phoning mobile telephones from landlines.

Ofcom today opened consultation on slashing mobile termination rates, which are the wholesale charges that operators make to connect calls to each others’ networks.

Under Ofcom’s plans, these wholesale rates would fall from around 4.3p per minute today, to 0.5p per minute by 2015.

This would lead to cheaper calls to mobiles for the 32.7 million UK homes and businesses with a landline.

The proposals will also mean that both landline and mobile operators have more flexibility in designing competitive call packages, promoting competition for the benefit of consumers.

The UK mobile market has changed significantly since Ofcom last set termination rates in 2007.

Today there are many smaller communications providers including mobile virtual network operators (MVNOs), VOIP (voice over IP providers) as well as the four mobile operators with national mobile networks (3UK, O2, Vodafone and the merged Orange/T-Mobile).

According to Ofcom figures, the volume of data traffic over mobile networks has increased by 200% over the last year.

"To take account of the changing mobile market, Ofcom proposes to change the way that mobile termination rates are regulated for the 2011 – 2015 period," said a spokesman.

(PR/GK)

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