Ofcom proposals - cheaper landline-to-mobile phone call charges
May 20th, 2010
On the 1st April 2010, Ofcom published proposals which will make it cheaper to call mobile phones from landlines. The consultation proposes slashing mobile termination rates, which are the wholesale charges that operators make to connect calls to each others’ networks. Ofcom last set its termination rates in 2007, and under the new plans, these wholesale rates would fall from around 4.3p per minute today (operator ‘3′ charges 4.6p), to fall to 2.5p next year, 1.5p in 2012/13, 0.9p the next year, and just 0.5p per minute in 2014/15. This would lead to cheaper calls to mobiles for the 32.7 million UK homes and businesses with a landline. Ofcom said it expects fixed-line operators such as BT to pass the saving onto consumers. Mobile phone users will probably not see any benefit, though. These terminations charges will not affect mobile to mobile charges.
The way that consumers use mobile devices has also changed, with the greater take up of smart phones. As well as calls and texts, mobiles as being used to send emails and connect to the internet. Ofcom figures show that the volume of data traffic over mobile networks has increased by 200% over the last year.
The proposals, Ofcom are proposing will also mean that both landline and mobile operators have more flexibility in designing competitive call packages, promoting competition for the benefit of consumers. Today there are many smaller communications providers including mobile virtual network operators (MVNOs), VOIP (voice over IP) providers as well as the four mobile operators with national mobile networks (3UK, O2, Vodafone and the merged Orange/T-Mobile).
Lastly according to Ofcom, 2010 will be the year that there will be more calls from mobiles than landlines. Currently, 0800 numbers are free from landlines but charged at 20p per minute from mobile phones. The trend for companies is to move to 03 numbers. Deemed as ‘UK-wide’ numbers they are treated the same as 01 and 02 numbers. These are generally included within the minutes of prepaid plans of the top four mobile operators, though do check with your operator. For example, calls to Jersey, Guernsey, and Isle of Man mobile telephone numbers are chargeable. As there is an increase in mobile usage this can only mean the decline in the use of 0800 numbers.
The Wholesale Mobile Call Termination Review (second Consultation) is available to view.
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