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Mobile phone companies to slash call charges as consumers' bills are cut by £1 billion

Mon 29 Mar, 2010 // Firstnumber Team

Mobile phone users could start looking forward to cheaper phone bills as an industry watchdog, Ofcom, attempts to slash the cost of receiving calls from other networks.

Currently, phone users are charged a fee every time they accept a call from someone else on another network.

The fee is known as a termination rate.

At present, these rates can cost up to 4p per minute but are hoped to be cut by half from 2011 onwards.

The added fee is said to have contributed greatly to the stark rise in mobile phone bills over recent years.

The slashed connection fee would also benefit BT customers with the cost of calling mobile from a landline ringing up a whopping £750 million in fees each year alone.

Termination rates a currently thought to account for 80 per cent of the total cost of a regular phone call between different networks.

Telecommunications experts are suggesting the cost of mobile phone calls could be reduced to as little as 1pence per minute if the termination fee is scrapped altogether.

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