Ofcom caps mobile termination rates until 2011

Ofcom is suggesting reduced termination charges of 5.3p per minute

UK telecoms watchdog Ofcom has proposed a slight cut in the price of wholesale mobile voice call terminations that would run until 2011. 

Termination charges are currently an average of 5.63p per minute for networks using 900MHz spectrum bands, or 6.31p per minute for 1800MHz networks.

The new charges would be reduced to approximately 5.3p per minute across both 2G and 3G networks, which is the first time that 3G networks have been included in the pricing.

The 5.3p per minute charge covers Vodafone, O2, T-Mobile and Orange, while the average termination charge for 3 would be reduced to approximately 6p. 

The wholesale mobile call termination rate is the fee that mobile network operators charge to connect calls made from other fixed or mobile networks. The current pricing regulation expires in March 2007.

Ofcom said that it had originally set up the rates to stop mobile phone companies charging whatever they wanted for call terminations.

"In June 2004 Ofcom concluded that mobile network operators are able to control the cost of connecting others to their network and that regulation was required to protect consumers from excessive prices," said an Ofcom statement.

The deadline for responses to Ofcom's consultation on mobile call termination is 22 November 2006, and the watchdog expects to publish a concluding statement early in 2007.

Ofcom also said that it plans to look at the termination costs for text messages.