A MTR (Mobile Termination Rate) is the fee that a mobile phone network is allowed to charge for connecting a call to their network. Unfortunately for the consumer, until now networks have been allowed to charge inflated costs for voice calls, resulting in expensive phone bills.
UK regulator Ofcom set out a plan last April to reduce the amount that UK networks can charge customers for voice calls. At the time (and at present), UK networks are allowed to charge a maximum of 4.3p per minute, though Ofcom are aiming to reduce this to 2.5p in April this year. Ofcom has ruled that from April, MTRs must come down from around 4.3p per minute to 2.98p, eventually coming down to around 1p per minute by 2014.
This proposal will obviously mean cheaper mobile calls for the consumer (hurrah!), and will also benefit landline users who shy away from calling a mobile number due to the high costs. The move will also encourage competition within the economy, thus resulting in better deals for consumers and a healthier market.
UK network Three say this move by Ofcom will allow them to reduce the overall cost of their “all-you-can-eat” style contract and pay as you go bundles. If the overall cost of connecting a call can be reduced, then a network can reduce their call bundles too.
So, starting as of next month, we should hopefully see our UK networks reduce call costs, and in turn see cheaper mobile phone bills.
Via: ThreeBlog