Ofcom ruling leads to higher charges for some UK PAYG consumers

 

By Posted 5 Jul 2011, 09:29

Ofcom recently brought into force new rules regarding the price of calling mobile phones from a landline in the UK. This Ofcom ruling now leads to higher charges for some UK PAYG customers, as certain UK carriers look to claw back some of the lost revenue.

Orange will be putting their prices up from this coming Friday according to an article by David Meyer on ZDNet. Calls will now cost 25p per-minute up from 20p, and texts are also going up from 10p to 12p. Vodafone are also upping costs for PAYG customers beginning from July 14, with calls rising from 21p per-minute to 25p, and texts going up to 12p.

Other operators such as O2, T-Mobile, and Three have said they have no plans to increase their prices, but the increases by Orange and Vodafone only brings their prices in line with their rivals. Vodafone made a point that the Ofcom ruling in cutting mobile termination rates was to blame for the higher prices. These are a charge an operator puts on another carrier for connecting a customer of a rival operator.

This ruling started back in April and landline operators such as BT and TalkTalk quickly offered cheaper calls to mobile phones. Vodafone threatened there will be price rises when it first had talks with Ofcom regarding the cuts.

Ofcom have said that the price rises are overshadowed by the cuts in mobile termination rates, and urged consumers to shop around to find a better deal. T-Mobile offers a service which costs 20p per-minute for calls and texts at 12p, while O2 charges 25p per-minute and 12p per text. Three charges it customers on PAYG 26p per-minute and 11p for texts.

So before the price increases Vodafone and Orange were very competitive with their PAYG pricing, but this will be of little consolation to current customers of the carriers who now face higher call charges. Consumers can use various websites in the UK to try and find a better deal such as USwitch.com and MoneySavingExpert.com.

Are you annoyed with the higher charges by Vodafone and Orange?

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