LONDON (Alliance News) - UK communications regulator Ofcom Friday said it has drawn up draft proposals to almost halve the amount mobile operators charge each other when their customers terminate a call.
The proposals are related to "mobile call terminations," which is when a consumer calls a mobile phone user on a different network from a landline or mobile phone, and the network operator charges the caller's operator a "termination rate" when the call is ended.
Ofcom said it has already lowered mobile termination rates in recent years, but said its draft statement Friday will propose a new charge control which will apply to all operators.
Under the proposals, termination rates will fall to 0.477 pence from the current rate of 0.817 pence. The new rates will come into effect in April 2017.
The new termination rates will affect Vodafone Group PLC and all the other big operators. BT Group PLC said Thursday it has agreed to acquire mobile network EE Ltd, meaning it is likely to also be affected by the time the new rates come into effect.
Following notification of today's draft statement to the European Commission, Ofcom expects to publish a final statement in March 2015.
Vodafone shares were down 0.9% to 228.75 pence per share while BT shares fell 0.6% to 439.73 pence per share.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
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