Cost of calling other mobiles set to fall

Mobile Phone

Mobile Phone

The cost to users of calling mobile phones of different networks, and landlines is set to fall further, after Ofcom imposed cuts.

Termination charges, which are fees charged by mobile phone networks to their fellow networks for handling calls from their networks are st to fall 80% in the next four years.

Mobile networks currently charge between 4.18p and 4.48p to deliver a call to another network, but Ofcom has demanded this be reduced to just 0.69p in the next 4 years.

Whilst many will argue the networks will make the bulk of the savings, Ofcom is also demanding the savings be passed onto the customers.

From 1st April this year O2, Everything Everywhere (Orange+T-Mobile), Vodafone and 3UK, will cut their rates to 2.66p, with tiered reductions until 2014 when it will hit just 0.69p.

The networks will be hard pressed to argue the changes are unfair, as Ofcom argues they are profiting from rapid growth in the use of their data services, like text messaging and mobile internet.

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