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Mobile phone costs set to fall, in 3 years!

Mobile Phone companies drop their costs – There was good news last week when the main three mobile phone companies announced that they were reducing their mobile termination costs down to 5c by 2012.

These termination charges are what the mobile companies charge each other when customers make calls across networks, which are obviously passed on to clients. According to this article in The Irish Times, the charges will decrease by up to 47% :

From April 1st next, Vodafone and O2’s MTRs will fall to 7.8c while Meteor’s will drop to 9.4c. The three have agreed to further staggered reductions between then and 2012. Vodafone and O2 will reduce to 5c on April 1st that year while Meteor’s MTR will hit that level on October 1st, 2012.

In a key statement though, the article also points out:

Although there is no legal obligation for the operators to pass the reductions on to consumers, it is likely that call costs will drop.

The beginning of the article did estimate that the reduction in charges could save consumers up to €100m per year – but obviously only if the price reductions are passed on. Here’s hoping!

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