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Ofcom claims imposed cuts will benefit mobile phone users

Ofcom announces costs of mobile calls to different networks and landlines should drop by 2015

Ofcom, the independent regulator for the British communication industry, has imposed cuts on costs for mobile phone users. It insisted on the termination charges - the cost a company will impose on a rival when the latter calls one of its network users - be reduced by close to 80 per cent, by 2014-2015.

Currently, termination charges reach between 4.18p and 4.48p. However, cost reductions are set to start on April 1, when O2, Everything Everywhere, Vodafone, and 3UK, the country's four major operators, cut the charge to 2.66p. The regulator expects this charge to be reduced 0.69p by 2015

Ofcom claims these cuts will be beneficial to users and explains companies can make up for the loss thanks to the increasing revenues they are earning from other services, mainly text messages.

The new termination charge should also benefit landline companies calling mobile networks, as well as smaller mobile phone operators, which will be able to offer more competitive prices.