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Ofcom proposes cheaper inter-network calls

Ofcom has just announced its proposals to drastically cut mobile termination rates, which should in the long term see the cost of mobile tariffs and services drop considerably.

Termination rates are the rates that the networks charge each other when someone makes a call to a friend on another network. So if you’re on O2, for example, and you called a friend on Vodafone, the rate charged to O2 by Vodafone would be 4.3p a minute. This figure is set to fall to 0.5p per minute by 2015.

The idea is that these savings will be passed on to us, the consumer, in the form of cheaper and more competitive tariffs. 3, who has been particularly critical of the rates, is particularly pleased with this development.

Ofcom also announced that by 2011 mobile customers should be able to switch networks within one working day. Networks will have to text you your PAC code if you request it, and you should receive it within a maximum of two hours. This will make switching networks a whole lot easier. Bring on 2011.