LONDON (ShareCast) - Ofcom has unveiled new proposals that would reduce the wholesale cost of connecting mobile phone calls.

The telecoms regulator explained that under the planned changes, the charges imposed on calls made to different networks would results in cheaper consumer bills.

Ofcom said that since its last market review in 2011, industry rates have dropped by about 80% from around 4p a minute to 0.8p a minute.

However, it wants to introduce a new charge control that would mean termination rates for all operators would fall to less than half a penny per minute by April 2017 in real terms.

The regulator explained that the mobile phone market has changed, particularly with the introduction of 4G, which operators are planning to start using for voice calls in the near future. With mobile networks and technologies becoming more efficient, costs have fallen, which Ofcom wants to see reflected in consumers' bills.

Brian Potterill, Ofcom Competition Policy Director, said: "Consumers in the UK benefit from a thriving competitive market, and mobile calls have never been cheaper. The average cost of a call bundle has fallen from £40 to around £13 in real terms over the last ten years.

"We want to ensure mobile users continue to benefit from competition, which will deliver affordable services in the years ahead."

NR

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