Mobile phone fines ‘should go to councils’

Fines paid by mobile operators for poor customer service or coverage should be handed over to councils to boost digital connectivity, leaders have said.

Currently, fines levied on mobile operators by regulator Ofcom for incorrectly billing customers and the poor handling of complaints go straight to the Treasury, with no guarantee it will be spent on improving the country’s digital connectivity, the Local Government Association (LGA) said.

The government’s new Digital Economy Act, which is coming into force, will give Ofcom new powers to fine operators up to 10 per cent of their gross revenue if they breach licensing obligations to improve mobile coverage. The LGA is calling for the money to be handed over to local areas to support efforts to help residents and businesses access digital infrastructure.