The fee mobile phone firms charge rivals for handling calls from their networks, is set to fall by 80% over the next four years following cuts imposed by Ofcom. Currently, mobile operators charge between 4.18p and 4.48p for delivering a call to another network. However, Ofcom wants this to be reduced to 0.69p by 2014-15, and says it expects the cuts to be passed on to customers. The proposed changes should increase competition within the market and thus, improve prices for consumers.
The phased reductions will begin on 1 April with the termination rate for the big four operators - O2, Everything Everywhere, Vodafone, and 3UK - cut to 2.66p. Lower termination rates will also reduce the cost to landline companies of passing calls to mobile phones.
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