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Mobile Calls Get Cheaper
Thanks to new controls introduced by telecoms regulator Ofcom, mobile phone customers could soon be reaping the benefits of around £400-500 million in savings over the next few years. The controls will regulate the amount network operators can charge phone companies for connecting through their networks.
The proposed regulations will potentially save mobile phone companies millions, and Ofcom expect these savings to be passed on to end users. The charge controls will take effect in stages between now and 2011.
There are currently 5 mobile network operators (3, O2, Orange, T-Mobile and Vodafone) enjoying strong market presence in the UK. The proposed charge controls are aimed at helping consumers avoid paying unnecessarily high prices.
The new controls take effect from April 1st this year and run for a 4 year period, the result of a market review Ofcom commenced in June 2005 to determine what degree of regulation was required in the mobile market. Essentially, the controls are there to ensure that each operator connects calls to its network at a fair charge rate and those charges should be clear to the end user.
A summary of the control charges follows:
3 charge controls will be subject to a reduction of around 45% from today’s charges
Average wholesale charges of Vodafone, O2, Orange and T-Mobile will be reduced to 5.1 ppm and will apply when connecting calls on both 2G and 3G networks.
(for Orange and T-Mobile this represents a reduction of around 20%; and for Vodafone and O2 a reduction of around 10%)
www.businessinberkshire.co.uk/mymobilenews
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