Ofcom plans reduction in wholesale cost of UK mobile calls

UK regulator Ofcom has proposed further cuts to the country’s mobile termination rates, as it attempts to lower costs for consumers.

The new mobile control charge would apply to all operators, and see termination rates reduced to less than half a penny per minute by April 2017.

The UK’s mobile termination rates have fallen rapidly since Ofcom first imposed a control on the rates charged the four largest network operators in 2011. Since then, industry rates are said to have fallen by approximately 80%, from 4p per minute to around 0.8p per minute.

“Consumers in the UK benefit from a thriving competitive market, and mobile calls have never been cheaper. The average cost of a call bundle has fallen from £40 to around £13 in real terms over the last ten years,” said Brian Potterill, Ofcom’s competition policy director.

“We want to ensure mobile users continue to benefit from competition, which will deliver affordable services in the years ahead.”

Consultation on the proposals closes on 13 August 2014, with Ofcom expecting to publish its final decisions by March 2015.

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