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

21/07/2009

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.