EU ban sends cheapest deal price soaring
THE cost of the cheapest pay-monthly mobile phone plans has almost doubled in recent weeks, as a result of new European legislation that bans companies from tying customers into three-year contracts.
5-a-month budget plans - for a 36-month contract - have disappeared since the EU ruling was brought in at the start of the month, pushing the cheapest deal on the market up to 9.
"As a general rule, the longer the contract, the lower the monthly fee, so it's possible that average contract costs will now rise," said Ernest Doku, technology expert at uSwitch.
The practice of handing out free mobile phones as part of a contract is also under threat as providers look to cut costs.
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