Pay as you go phone costs may increase

THE cost of owning a pay-as-you-go mobile phone may soar under plans to make operators slash the price of connecting calls, it has been claimed.

Telecoms regulator Ofcom wants termination rates cut from 4.3p per minute to 0.5p by 2014, but Vodafone has warned that operators would recoup the lost revenue by hiking the cost of handsets. The move would hit users who own a mobile phone only for emergencies or incoming calls.

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