Phone deals cheaper but less mobile

MOBILE phone users are signing up for cheaper contracts that lock them into a longer deal, according to a snapshot of the nation’s telecommunications usage.

In Ofcom’s annual report, The Consumer Experience, the regulator found that by the end of last year almost 50 per cent of mobile phone subscribers were locked into contracts, compared with just 41 per cent previously.

Although not everybody uses a mobile phone – in Scotland, the figure stands at 86 per cent, below England and Northern Ireland at 92 per cent and Wales at 87 per cent – there are now 131 phones for every 100 people in the UK, up by 18 from the previous report. Many people have more than one phone for personal and professional use or have taken on sim card-only deals to save money.

The rise in mobile phone use has also hit landlines. In Scotland, there are fewer landlines per head of population at just 80 per cent, compared with 85 per cent UK-wide.

Overall, the number of people using landlines has slumped by 3 per cent.

“Longer contracts tend to offer greater choice in terms of handsets, but come with a longer financial commitment and, in some cases, penalties for ending the contract early,” said Vicki Nash, director of Ofcom Scotland.

“We would always urge consumers to check the terms and conditions carefully. Consumers should ensure that the type of services they want are available in their area by utilising coverage checkers available on the operators’ websites.”

Susan McPhee, head of policy for Citizens Advice Scotland, said: “The report shows a concerning rise in the numbers of young people and people from low-income households who are taking out mobile phone contracts, increasingly for longer contract periods and for smart phones.

“Evidence from Citizens Advice Bureaux across Scotland shows mobile phones can be a major source of debt, particularly for young people. Consumer education and empowerment to make genuine and informed choices are vital, especially for those already facing hard economic times.”

More than two-thirds of new mobile contracts sold in the first three months of 2011 were for 24 months, whereas two years previously 87 per cent of new contracts were for 18 months or less.

In May, Ofcom banned three-year contracts for mobile phones and broadband, bringing the UK in line with EU telecoms law.

But while the number of “silver surfers” – older people who have access to a computer – has rocketed UK-wide, the number of people who own a computer, laptop or tablet is lower in Scotland than in the rest of the UK at 65 per cent, compared with than 78 per cent in England and 74 per cent in Wales.