Mobile phone charges could drop

Wednesday, 20 May 2009 10:33

The cost of mobile phone calls could fall according to the telecoms watchdog.

Ofcom has today published a review of mobile termination rates, which could be set from 2011 to 2015, reducing them by 25 per cent over the next four years.

Termination rates, which are the wholesale charge operators make to connect to each other's network, could be lowered, meaning mobile phone operators are able to design more competitive call packages, and in turn pass the reduced prices onto the mobile phone user.

Following today's review, the watchdog will be allowing a thorough consultation ahead of expiry of the current charge controls.

Ed Richards, chief executive of Ofcom, said: "The role of termination rates in mobile services has attracted enormous controversy.

"That is why we are determined to examine them from first principles. This consultation gives consumers and industry an opportunity to debate the fundamental questions."

The consultation sets out six options including maintaining the current system, which has already seen rates come down, to a "system where the customer's own network is responsible for all costs of making and receiving calls".

Ofcom also said some of the options were "radical alternatives" to ensure the best outcome for consumers.

It added most of the options would reduce the current rates, but a deregulatory option is "uncertain".

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