Ofcom cut mobile termination charges
For once, mobile phone operators will be the ones muttering swear words under their breath this morning, as Ofcom have decided to tell them off for continually shafting us plebs.
Basically, the watchdog has ruled that mobile operators will have to lower the cost of their termination rates, the amount they charge rivals to connect calls to their network.
Charges are currently around 4.18p a minute, but Ofcom have said that this needs to drop to 2.66p by the end of 2011, with a further drop to 0.69p by 2015.
Presumably, the costs will rise elsewhere as mobile companies try to recuperate some revenue. And at the moment, these charges account for something in the region of 10% and 15% of their revenues. They'll be really, really irked by all this.
It is likely that operators stop giving out free phones with contracts, which could dent the smartphone market considerably.