Ofcom looks into mobile call costs

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Communications watchdog Ofcom has launched a consultation looking into what mobile calls should cost in the next few years.

The regulator has already set so-called wholesale mobile termination rates – the amount networks charge to connect calls to different networks – at a fixed rate to run from 2007-2011, but it is now asking users to give their feedback on what calls should cost for the next four-year period.

The consultation was launched today and consumers have until the end of July to have their say about the six options Ofcom has put forward. These options include keeping things as they are in terms of lowering rates each year or making operators pay all the costs associated with traffic across their network, whether incoming or outgoing.

“The role of termination rates in mobile services has attracted enormous controversy,” said Ed Richards, chief executive of Ofcom, in a statement.

“That is why we are determined to examine them from first principles. This consultation gives consumers and industry an opportunity to debate the fundamental questions.”

If rates are lowered, operators should be able to make their call packages more competitive and attract new customers, according to Ofcom.

In other news today, Ofcom announced it was implementing an organisation-wide pay freeze and planned to do away with bonuses for this year, given the current climate.

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