28-Jan-2011 12:45

Mobile operators forced to offer 12month contracts

Mobile phone providers will be forced to offer 12-month contracts under new EU rules set to be agreed by Ofcom, the UK’s telecommunications regulator.

According to a MoneySavingExpert report, Ofcom will ensure that by end-May 2011 mobile operators must offer annual contracts, allowing consumers the option to upgrade their mobiles handsets to newer models more often and re-assess their contract costs too..

The rising popularity of smartphones has resulted in lengthier contracts that tie users in for up to two years. Currently consumers are often only offered minimum 18 or 24-month contracts on the latest smartphone handsets.

Ofcom say: ‘The European Telecoms Package has to be transposed into UK law by the end of May. Under it, contract lengths must not exceed 24 months and consumers should have the option to subscribe to a 12 month contract.'

However, whist shorter contracts will undoubtedly give users greater flexibility, monthly contracts may also prove more expensive..

Consultations are due late Spring and Ofcom will subsequently provide greater details.