Watchdog to probe price rises in phone contracts

Ofcom is to consult on how to protect consumers after a review conducted earlier this year raised the alarm over the practice, which according to consumer group Which? has hit 10m customers.

Several companies have increased prices for contract customers this year, including Vodafone, which revealed line rental on fixed contracts would increase £1.55 a month from November. Three, T-Mobile and Orange have already done so, Which? said.

Which? executive director Richard Lloyd said: “We hope that Ofcom will now act swiftly to ensure that the mobile phone companies are made to drop hidden clauses in their contracts that allow them to hit consumers with millions of pounds’ worth of unexpected price increases.”

The consultation will consider whether price variation in fixed-term contracts is appropriate.