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New Ofcom Rulings Could See Cheaper Calls to Mobiles

(29-03-07) - The communications industry regulator, Ofcom, has announced new controls limiting the amount that mobile networks can charge other phone companies for connecting calls.

These new regulations will only limit the amount that mobile networks can charge other phone networks, but Ofcom expects the wholesale savings to be passed on to consumers. Ofcom has decided to reduce average wholesale charges across the board.

The charge controls will apply for the next four years, during which time Ofcom expects an average annual reduction of £400 to £500 million in wholesale charges.

What rate changes will the mobile companies make?

Vodafone and O2 will be subject to a charge reduction of around 10%; Orange and T-Mobile charges will be reduced by around 20%; and 3 will see a reduction of around 45% from today’s charges.

Chris Eagle, Commercial Manager at www.homephonechoices.co.uk, said: “This is great news for consumers. We should see calls to mobiles getting cheaper, or the networks could decide to cut other charges instead. Once the first big phone company decides to reduce its prices, the rest should follow, so consumers should keep their eyes on the market and be prepared to switch suppliers.”

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