Will mobile phone contract prices go up?

Will mobile phone contract prices go up?

A dramatic price increase issued by Ofcom to mobile phone networks has led to fears that consumers will be left to foot the bill.

British telecoms regulator Ofcom has announced that it will increase the fees that network operators have to pay for spectrum, despite complaints from the likes of EE, O2, Three and Vodafone.

Fees will rise from £15.6m to £83.1m for O2 and Vodafone, £24.9m to £24.9m for EE and from £8.3m to £35.7m for Three.

Although Ofcom has reassured users that the hike in prices won’t get relayed to the consumer, some analysts aren’t so sure. Ofcom is said to be reconsidering the huge price increases for UK mobile networks, and insists that proceedings will have no direct impact on the public.

Ofcom also dismissed any suggestion that the price increase was due to its 4G spectrum not selling for as much as anticipated earlier in the year.

This comes as worrying news for mobile phone networks who are already bringing in less revenue from  roaming charges compared to previous years due to EU pressure to minimise the cost of using a phone abroad.

None of the major networks have made a statement about Ofcom’s plans, though we can expect that they will not take the changes lying down.