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From September, the cost of calling a mobile phone from a fixed line in the UK will be significantly reduced, after regulator Ofcom demanded a 30 per cent cut on termination charges.
The move, which backs an earlier Competition Commission ruling to cut the wholesale charges mobile operators impose on landline operators for connecting calls to their networks, will affect mobile operators, Vodafone, O2, T-Mobile and Orange. The decision would see Vodafone and O2 cutting their wholesale charges from about 8p to 5.63p a minute and T-Mobile and Orange reducing charges from about 9.5p a minute to 6.31p a minute.
Last year BT was criticised for not passing on the price cut to consumers sufficiently quickly. The company reportedly said that it hoped to be able to pass on the new savings to customers without delay.
Orange welcomed Ofcom's decision as bringing to an end the uncertainty that has dogged the industry for months. "We want to ensure the cost reductions required by Ofcom are passed on to consumers and will be liaising with Ofcom to ensure that BT reduces its retail rates in a timely manner," said a spokeswoman.
Vodafone, which led the case against the original price cuts, said last night it was still reviewing its position. The company emphasised, however, that this did not mean it was necessarily considering further legal action.
Oftel, the previous telecom regulator, originally envisaged three annual cuts in charges in the period to March 2006. But while its initial cut was implemented, the subsequent cuts, of inflation minus 15 per cent, were postponed because of a legal challenge to the ruling. Ofcom has now decided the operators should implement just one cut, of inflation minus 30 per cent.
Market entrant '3,' with the highest termination charges, is exempt because it is investing in 3G.
The move, which backs an earlier Competition Commission ruling to cut the wholesale charges mobile operators impose on landline operators for connecting calls to their networks, will affect mobile operators, Vodafone, O2, T-Mobile and Orange. The decision would see Vodafone and O2 cutting their wholesale charges from about 8p to 5.63p a minute and T-Mobile and Orange reducing charges from about 9.5p a minute to 6.31p a minute.
Last year BT was criticised for not passing on the price cut to consumers sufficiently quickly. The company reportedly said that it hoped to be able to pass on the new savings to customers without delay.
Orange welcomed Ofcom's decision as bringing to an end the uncertainty that has dogged the industry for months. "We want to ensure the cost reductions required by Ofcom are passed on to consumers and will be liaising with Ofcom to ensure that BT reduces its retail rates in a timely manner," said a spokeswoman.
Vodafone, which led the case against the original price cuts, said last night it was still reviewing its position. The company emphasised, however, that this did not mean it was necessarily considering further legal action.
Oftel, the previous telecom regulator, originally envisaged three annual cuts in charges in the period to March 2006. But while its initial cut was implemented, the subsequent cuts, of inflation minus 15 per cent, were postponed because of a legal challenge to the ruling. Ofcom has now decided the operators should implement just one cut, of inflation minus 30 per cent.
Market entrant '3,' with the highest termination charges, is exempt because it is investing in 3G.