Telecom chops into call costs

Telecom says it has started reducing the cost of calling from its landlines to all mobile phones by an average three cents per minute.

New rates would apply to Telecom's published rate plans and were the result of the Government reaching separate agreements with Telecom and Vodafone to reduce the cost of mobile termination rates, Telecom said today.

The price cuts were the first phase of reductions. Telecom said it had agreed to reduce its mobile termination rate from 20 cents per minute to 12cpm during the next five years.

- NZPA