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MSE News: Which? calls for mobile price rise curbs

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"Which? has today launched a new campaign calling for an end to price increases on 'fixed' mobile phone contracts..."

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  • NFH
    NFH Posts: 4,413 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    As I posted in another thread (beating MSE to it by only 14 minutes!), you can pledge your support to the Which campaign at:

    http://conversation.which.co.uk/technology/fixed-means-fixed-campaign-mobile-phone-price-rises-ofcom/
  • dtaylor84
    dtaylor84 Posts: 648 Forumite
    Part of the Furniture Combo Breaker
    I'm all for preventing price increases in the initial contract period, as it seems blatantly unfair that someone can be forced to pay more without the option of leaving.

    However, mobile phone providers will never (and should never, IMO) agree to a cap on early termination fees - it costs a lot to leave early because the contract includes a massive subsidy for the expensive handsets provided for free as part of the deal.

    If you want the companies to stick to the agreed contract it seems a bit rich to also say you want the consumer to have the right to break it when it suits them!
  • NFH
    NFH Posts: 4,413 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 16 July 2012 at 1:16PM
    dtaylor84 wrote: »
    However, mobile phone providers will never (and should never, IMO) agree to a cap on early termination fees - it costs a lot to leave early because the contract includes a massive subsidy for the expensive handsets provided for free as part of the deal.
    I'd like to see an end to the practice of the service contract subsidising the handset. Unbundling of the two would make costs more transparent to consumers and would discourage consumers from buying handsets that they can't afford.

    If everyone bought full price non-SIM-locked handsets and was on one-month contracts, the networks would be more competitive to retain customers rather than imposing price increases on customers whom they have locked into 24-month contracts. This is the norm in many other countries, where competition operates more effectively.
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