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Cheaper calls coming to your mobile phone

Government regulatory authority Ofcom has announced a reduction in the call costs between the four major mobile phone companies in the UK, by up to 80-percent.

The drop in the wholesale charges by Ofcom affects 3UK, O2, Vodafone and Orange/T-Mobile under the guise of Everything Everywhere. This is to take place over the next four years, where the reduction will be 80-percent of where the costs currently stands.

This news is designed to benefit the consumer, for both cheaper calls from landlines to mobiles and by offering up greater choice in pricing structures for the end user – within time.

These wholesale or termination rates are the cost incurred by the network when a call is placed to another network. This currently stands at 4.18p per minute on O2, Everything Everywhere and Vodafone along with 4.48p on Three – up until April 1st.

After the start of next month, the costs are reduced to 2.66p for 2011/12, 1.70p for 2012/13, 1.08p for 2013/14 and ending up at 69p in 2015. This isn’t the price to the consumer, only between mobile phone networks and landline companies.

What this potentially means in the long run for the consumer is that mobile phone networks could offer more minutes than they currently do, as a part of the tariffs accompanying allowance – if the call reduction costs are passed along.

Originally published at