Orange and Vodafone up pay-as-you-go prices

While new mobile network rules might make it cheaper to make some mobile calls, some new Ofcom regulations have actually made it more expensive for some users to make calls from their handsets.

According to ZDNet, both Orange and Vodafone have increased their pay-as-you-go prices, claiming it is the move is in response to new Ofcom rules that make it cheaper to call mobile phones from landlines.

Orange unveiled its new rates on Friday, which were applicable from that day. Calls go up from 20p to 25p per minute, and texts from 10p to 12p per text. Vodafone's price increases take effect from 14 July, with calls increasing from 21p to 25p per minute and texts from 10p to 12p.

So far, the price increases are restricted to those networks, with T-Mobile, O2 and Three confirming that they do not plan to raise their own pay-as-you-go prices. However, the price increases from Orange and Vodafone do actually put them in line with the other networks, rather than taking them higher, so there's no obvious reason for the other networks to bump up their rates right now.

According to Vodafone, the rises are due to Ofcom demanded a cut in mobile termination rates (MTRs), the charge on another operator to have the second operator's customer connect to the first operator. If that makes sense. Vodafone is essentially balancing the books with the price increases.

Ofcom still believes its regulations benefit the greater good in the long-term: 'There is a lot of competition in the mobile market and we urge consumers to shop around to get the best deal for them,' an Ofcom spokesperson said.

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