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Mobile phone termination rates cut

Mobile phone termination rates cut

Ofcom has cut the upper limit mobile phone networks can charge for connecting calls from landlines.

The introduction of the new cap on so-called termination rates, which affects O2, Three, Orange and T-Mobile and Vodafone, will see the maximum price networks can charge landline customers to connect a call drop to 2.66p. Currently, the upper limit is just over 4p.

More junior networks, think: Virgin Media and Tesco Mobile, are exempt from the ruling, which is intended to foster greater competition among the UK’s carriers.

BT welcomed the regulator’s removal of the cap and has already confirmed it will be passing on the resulting savings to its customer base.

John Petter, managing director consumer, BT Retail, said: "Ofcom has made some worthwhile reductions in mobile termination rates, which will benefit customers in the near future."

Further reductions are to be phased in over the next few years. By 2015 the upper limit for termination rate is to be cut to 0.069 per minute.

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