Ofcom announces lower mobile rates

UK COMMUNICATIONS REGULATOR Ofcom has announced a reduction in mobile call rates in an effort to benefit consumers.

The reduction will affect termination rates, which are charges that mobile operators tack onto calls for connecting to their network. These have been traditionally high at over six pence per minute in 2006, but the rate has fallen slightly over the last few years to just under five pence per minute.

Ofcom will enforce even lower prices over the next several years, with a planned 80 per cent reduction in termination rates by 2014. This will bring the cost to under one pence per minute, making calls significantly cheaper for mobile users.

This won't affect just the mobile industry, as Ofcom believes cheaper landline services will follow suit, since lower termination rates will reduce costs for landline companies when passing calls on to mobile phones. The regulator also expects competition to increase as a result.

Ofcom is now placing a cap on these rates for the four main mobile operators in the UK - O2, Vodafone, Three and Everything Everywhere.

The termination rates cap will come into effect from 1 April. µ