Mobile phone call rates 'may fall to reflect new rates'

21/07/2009

Mobile Phone Call Rates May Fall To Reflect New Rates

Mobile termination rates (MTRs) may be adjusted and lead phone call rates to drop in future, it has been suggested.

Matthew Howett is a senior analyst at Ovum and said these costs, which are the charges operators pay to connect callers to mobile phones, are a "flaw" in the billing system because they are being cross-subsidised by the industry.

Ofcom and the EU are working towards bringing these levies down, so a different charging system may be implemented in the coming years, he explained.

"We can't move to a new system till we bring these rates down to a lower level and whether they move to a new charging method needs to be agreed by the mobile operators."

Mr Howett's comments follow advice this week given by Techworld, which said buying a cheap phone was a "false economy".

Those looking to recycle their existing handset could use the cash they receive for a better replacement.