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The cost of broadband bundles could be reduced following Ofcom's decision to reduce mobile termination rates.

New termination rates are to come into force from April 1st, meaning mobile operators will be required to reduce the charges faced by customers connecting to rival networks.

The four main network operators – Everything Everywhere, 3, Vodafone and O2 – must cut their charges by 80 per cent over the next four years.

Ovum Analyst Matthew Howett said the change could see UK internet service providers launch new broadband bundle options.

"Consumers are set to be the main beneficiary, and will notice the cost of calling from a BT fixed line to a mobile will fall dramatically over the next four years," he stated.

"This will allow fixed-line operators such as BT to bundle minutes to mobiles within their call packages, which up until now has been prohibitive given the cost."

Mr Howett said it will be the mobile network operators, rather than fixed-line providers, "who feel the most pain".

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