Pact between government and telcos aims to cut mobile bills in the UK

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British telecoms groups have signed up to a government plan to cut the cost of mobile phone bills.

The proposals, which have been debated with the industry over the past few weeks, are part of wider attempt by the government to tackle the cost of basic goods and services. Under plans to be announced on Dec 3, mobile groups such as EE, Three, Virgin Media and Vodafone have agreed to cap bills on a phone that has been reported lost or stolen to £50. The groups will also stop unexpected mid-contract price rises by ensuring transparency for consumers at the start of contracts. This is in line with work already under way by Ofcom, the telecoms watchdog. The government has also agreed with the industry to eliminate roaming charges by 2016. Roaming charges -- the cost of using a mobile device overseas -- are already being reduced across Europe under Brussels regulations. The final plans do not cover landline telecoms, while mobile operator O2 has not signed up to the proposals. BT, Sky and TalkTalk have joined up although they offer limited mobile services.


Pact between government and telcos aims to cut mobile bills in the UK