Ofcom calls time on BT's mobile termination rates

BT also set to repay charges retrospectively, and with interest

Ofcom has ordered BT to stop excess mobile termination charges to mobile operators

UK comms regulator Ofcom has ordered BT to stop applying termination rates for mobile operators whose customers call 0845 and 0870 numbers on mobile phones.

Termination rates are charges levied by operators for hosting calls on their network, and makes up part of the call charge paid by mobile phone users.

The charges applied by BT are based on a sliding scale and are activated when the amount charged to mobile phone customers for calls to 0845 and 0870 number by mobile operators goes above 12.49 pence per minute (ppm).

For 0845 numbers charged between 12.5 and 17.49 ppm, BT's cut is 2ppm, which increases as the mobile operator charges increase.

For calls charged at over 32.5ppm by the mobile operators, BT's cut increases to 13ppm. BT applies a similar scale of charges to 0870 numbers.

BT began charging mobile operators on 1 November 2009.

In its provisional judgment Ofcom said: "Our conclusion is that it is not fair and reasonable for BT to apply new termination charges for calls to 0845 and 0870 numbers hosted on its network."

Following the judgment, however, Ofcom went further and provisionally ordered BT to repay any amounts paid, together with interest on these amounts."

Ofcom's ruling is open for comments until 17 June, and given that the comms regulator is supposed to be a champion for consumer rights, there are likely to be a number of questions about why the mobile operator charges are so high in the first place.