Ofcom proposes slashing mobile call charges

Communications watchdog Ofcom will be asking mobile phone companies to cut charges for calls between networks.

The regulator is proposing to cut the "mobile termination rate" - the wholesale charges that operators make to connect calls to each others’ networks - from 4.3 pence per minute to half a pence per minute by 2015. Which will mean cheaper calls between networks.

The proposals will also mean that calls from a land line to a mobile phone will be cheaper.

Ofcom said the UK mobile market has changed significantly since it last set termination rates in 2007. Consumers today are as likely to send text messages or emails as make phone calls and mobiles are increasingly used to connect to the Web.

The watchdog said the volume of data traffic over mobile networks has increased by 200 per cent over the last year.

It will make a final decision on mobile termination charges later this year.