Mobile firms will be forced to end overpriced handset deals

♦ Mobile phone customers could save up to £38 a month under Ofcom plans to automatically move them on to cheaper deals once they have paid off their handsets.

New rules proposed by the telecoms regulator yesterday could be introduced next year to stop consumers being overcharged for handsets via overpriced contracts.

Ofcom estimates that 1.5million consumers are paying monthly instalments towards a handset that has already been paid off. Ofcom said: “We are also concerned that when a mobile customer signs up for a bundled contract, providers are not transparent about the respective costs of the handset and the airtime – so customers cannot tell how much they are paying for the different parts of their deal. We think this is unacceptable.”

According to Citizens Advice, consumers are paying £38 too much for smartphones each month, and £22 for other phones.