Call to cap mobile charges

Lower prices on the way
Lower prices on the way

The cost of calls between mobile phone operators is set to fall after the industry watchdog proposed a new cap on charges.

Ofcom said mobile phone termination rates - where networks charge each other to connect a call to a mobile or landline - should fall by almost 42 per cent from 0.817p a minute to 0.477p in April 2017.

Ofcom said it has ensured that charges have continued to fall as the economies of scale in the industry have increased over the last decade. It said in 1995 mobile phone termination rates were as high as 25p.

The regulator said: “Following previous intervention by Ofcom, mobile termination rates have fallen significantly in recent years.”

The watchdog added it intends to publish its final statement on termination rates next month, once the European Commission has approved its plans.