Mobile phone calls to get cheaper

The cost of calling or sending texts to another mobile phone network is set to fall.

Communications regulator Ofcom has proposed new limits on termination charges - the amount one network charges another to handle a cross-network call.

Whenever someone phones another network, both operators have to handle the call. Traditionally, the network where the call terminates charges a fixed amount per minute to the caller's network. The person making the call is then billed by their own network.

But there have been complaints that networks charge each other too much for this - encouraging their users to make calls to people on the same network and penalising people calling their users.

In June 2004 Ofcom imposed strict limits on how much networks could charge each other - and so consumers - for cross-network calls.

But this agreement is set to expire in March next year, and did not take 3G calls or text messages into account.

In response to this, Ofcom has announced plans to cut the amount networks charge each other to 5.3 pence a minute for voice calls and six pence a minute for 3G calls.

This should result in a drop in the cost of calling other networks from mobiles or landlines.

Additionally, Ofcom is now going to review the SMS or text market next year

Networks have until November 22nd to respond to these proposals.