Ofcom cuts mobile connection chargesMove hailed as good news for consumers

27 March 2007

 

A close-up of a telephone cord a man is using to make a call.

Telecoms regulator Ofcom is forcing mobile phone companies to cut the amount they charge other networks for connecting a call.

The watchdog believes the price curbs will save phone companies between £400 million and £500 million per year, savings which it expects to be passed through to customers.

Landline customers have most to gain because their operators will not pay such hefty fees to the mobile phone firms.

Ofcom predicts the move means landline customers could save up to £8 per year.

‘Significant savings’

An Ofcom spokesman said: ‘This is very good news for consumers. This means significant savings that we expect to be passed on to customers as soon as possible.’

Orange, O2, Vodafone and T-Mobile's termination charges will be cut to a maximum 5.1p per minute.

This means reductions of around 20 per cent for Orange and T-Mobile and around 10 per cent for Vodafone and O2. The new charge caps will be phased in from the start of April.

Monitor market

Which? Assistant Editor Lisa Barber said: ‘'This is a good deal provided that these savings get passed on to consumers. We hope that Ofcom will closely monitor the market to make sure this happens.'