The UK telecoms regulator Ofcom has confirmed up to 80% reduction in Mobile Termination Rates (MTRs) over the next four years.

As of 1^st April 2011, Ofcom is going to place a cap on MTRs charged by the four national mobile network operators; 3UK, o2, Everything Everywhere (Orange and T-Mobile) and Vodafone. This cap will lead to a reduction of up to 80%.

Ofcom proposed MTRs (pence per minute)

The new rates will apply from 1^st April 2011 and end on 31^st March 2015.

Ofcom has been reviewing the MTRs since 2009 and at the same time the European Commission (EC) issued a Recommendation that fixed and mobile termination rates be limited to the incremental costs of providing call termination to other communications providers (the 2009 EC Recommendation).

It will be interesting to see what the reaction of the four national mobile operators here in the UK will be.