Council in bid to cut phone bills

OLDHAM is one of the first councils to sign up to a campaign which could save it money and slash phone bills for residents and businesses.

It is demanding that mobile phone companies cut the mobile termination rate (MTR) to call a mobile phone from a different network or a landline — around 4.7 pence or more per minute.

The amount charged to call mobiles from fixed lines in 2008 alone was £750 million.

More than 100,000 people have signed an online petition at www.terminatetherate.org.

Only a handful of councils have so far become official partners of the Terminate the Rate campaign, along with organisations such as the Post Office, the Federation of Small Businesses, the GMB union, Age Concern and MoneySupermarket.com.

Council leader Howard Sykes said the change would also save the council money, but the main thrust was about getting a better deal for residents.

He added: “It is time these ridiculous charges were challenged and the decision to support this campaign has cross-party backing within Oldham Council.

“The current level of MTRs is well in excess of the actual cost of connecting a call and also well above the normal fixed termination rates. If this campaign is successful it means phone bills will come down for everyone in the UK.

“As a local authority we would reduce our costs dramatically and that would also free more money that could be better invested on frontline services.

“Local businesses and residents would also have lower phone bills — something we would all welcome in the current economic climate.

“Termination rates, fixed and mobile, should be set fairly and on the basis of what it really costs to complete a call on another network — less than a penny a minute.”