Moneysupermarket.com: Ofcom’s announcement on mobile phone charges

Commenting on the announcement that Ofcom has ordered mobile phone firms to cut cross network connection charges, Rob Barnes, head of mobile phones at moneysupermarket.com said:

“This is welcome news from Ofcom. However, I expect the impact on customers will be minimal, with savings of perhaps 0.5p to 2p per minute maximum. It is also likely the networks will attempt to recoup lost revenue in other ways.

“By cutting connection charges Ofcom is seeking to regulate the termination fees applied to cross network calls. This is basically the charge imposed by the networks for carrying calls from the other networks. For example, when a call is made from a Vodafone mobile to an Orange mobile, Orange imposes a charge on Vodafone for carrying the call on its network – a charge which is then passed on to the consumer.”

Rob added: “It is interesting this has occurred at the same time as the EU proposal to regulate and cap roaming charges, and sends a strong message to the networks that the days of inflated charging are over. Ofcom has shown its teeth and displayed a willingness to take on the might of the networks to champion consumer rights and fairness. However, it remains to be seen if these savings are passed on immediately to the customer.”