Mobile phone bills should begin to fall after a watchdog ordered telecoms companies to slash the cost of calling another network . For years , mobile users have faced extra charges for so-called 'cross-network ' calls to friends , family and colleagues who have a different provider . The charges , known as the 'mobile termination rate ' , is passed on to the customer who made the call , but also affect calls made from landline operators such as BT and TalkTalk . For years , mobile users have faced extra charges for so-called 'cross-network ' calls to friends , family and colleagues who have a different provider . At the moment , these charges add 0.826 pence a minute to the usual cost of calls . However , Ofcom said yesterday that operators must slash them by more than 40 per cent over the next two years . By April 2017 , mobile companies will be allowed to only charge 0.475 pence per minute extra . Matthew Howett , a telecoms analyst at Ovum , said : 'This is a good thing for the consumer . The main benefit will be to customers making calls from a fixed line , where fees are stubbornly high… so it is particularly good for the elderly . ' Ofcom research has shown that older customers tend to use landlines much more than younger people . According to official figures , the vast majority of the population – 93 per cent – owns a mobile , and around three-quarters have both a landline and a mobile . Last year , around 16 per cent of adults in the UK relied solely on their mobile , and did not have a landline at all . Mobile operators have spent years lobbying to keep the mobile termination rate in place , helping to fatten their profits . The rates have been steadily reduced since the 1990s , when they were as high as 25p per minute , as mobile technology became more efficient and costs to the networks fell . However , yesterday the network operators expressed disappointment over Ofcom 's decision to cut them further , and issued a veiled threat they could increase other charges to make up for the reduction . Last year , around 16 per cent of adults in the UK relied solely on their mobile , and did not have a landline . A spokesman for EE said : 'The proposed implementation puts at risk future investments and our ability to offer customers the lowest possible prices . ' A telecoms source said that mobile phone companies would not be able to offer the same level of service if they do not get as much income from customers . Operators would face a choice to either allow the standards of their network and customer services to slip , or to recoup the money they have lost by increasing charges elsewhere . A spokesman for O2 added : 'There 's no such thing as a free lunch . Mobile operators invest billions of pounds in their networks . The cost of handling calls from other operators comes at a cost and needs to be recovered from those operators . ' Mr Howett said : 'The charges are based on the old-world of ancient switch networks . [ It is time to ask ] whether the system is still relevant ' . Mobile operators , however , said they were pleased that Ofcom has given them two years to reduce the charges , as they had feared they would have to slash them overnight . David Hickson , of the consumer campaign group , Fair Telecoms , predicted that Ofcom would continue slashing the charges for cross-network calls . 'Landline users have effectively been subsidising mobile users for years . That has to go away , ' he said . Mr Howett added that Ofcom would keep pressure on mobile companies to pass as much of the savings as possible to customers .
Ofcom ordered telecoms companies to cut cost of calling another network . Charges - known as 'mobile termination rate ' - add 0.826 pence a minute . By the 1990s , companies will be allowed to only charge 0.475p per minute .