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Orange and Vodafone pay-as-you-go prices go up following Ofcom ruling

Both the Orange and Vodafone phone networks will begin charging more for certain services on their pay-as-you-go tariff.

This is due to changes announced by Ofcom earlier this year, which reduced the amount made by networks when they charged rival networks to terminate calls, known as the mobile termination rate. The minimum call-charge for pay-as-you-go customers on Orange looks set to rise from 20p to 25p starting tomorrow.

From mid-July, Vodafone customers will also see their minimum call charge on certain tariffs jump up from 15p to 25p, and calls will rise to 25p per minute, up from 21p previously. Text messages will rise by 2p, now standing at 12p.

A spokesperson from Vodafone said: “We believe we continue to offer great value for all pay as you go customers compared with our competitors. This price rise comes after recent regulatory changes.

“During our discussions with Ofcom over mobile termination rates, we stressed that if the rates came down rapidly and dramatically, the cost of pay as you go was likely to rise as a consequence.”

Vodafone noted that their price changes would affect customers differently, depending on how they used their phone.

On the mobile termination cuts, Elizabeth de Winton, from Ofcom, told Moneywise that there was a lot of competition in the sector and that customers can still get a good deal.

“When we cut wholesale mobile termination rates – the high rates that mobile operators were charging each other to end calls on their networks – we did so in a way that would increase choice for consumers and lead to cheaper landline calls.

“We have already seen some operators, including BT, improving deals for consumers as a result of our decision.”

Via: Moneywise


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