Ofcom will from 1 April 2011 place a limit on the mobile termination rates charged by the mobile network operators, 3UK, O2, Everything Everywhere and Vodafone which will benefit consumers and promote competition.
Lower termination rates will cut the cost to landline companies of passing calls to mobiles and Ofcom expects these savings to be passsed on to consumers by UK landline providers.
Also, lower termination rates will promote competition in the mobile market with operators having more pricing flexibility.
Mike Wilson, mobile manager at moneysupermarket.com said: “Today’s announcement is what hard pressed customers have been waiting for. They will finally get a fairer deal on their landline to mobile and cross network mobile calls.
For too long consumers have paid over the odds for the calls they make and from April 2011 the charge applied will be significantly cheaper, and will continue to be reduced over the next three years.”
MoneyHighStreet.com comment: Clearly this is good news as these hidden termination charges have cost consumers significantly. Let’s hope mobile phone bills do come down and the networks don’t start charging elsewhere to make up for this revenue stream loss – we’ve already seen that free itemised mobile phone bills on paper are a thing of the past, what else might be hit?