BT Share News (BT.A)

(Sharecast News) - Mobile phone companies could be forced to place customers on cheaper tariffs at the end of their contracts as the telecoms regulator criticised the "unacceptable" practice of overcharging for handsets.Ofcom said it had been forced to act after mobile phone companies ignored its requests for an informal solution which could have been implemented swiftly.It said providers did not offer "sufficient or firm commitments" and it was now setting out proposals for regulation to address how people are sold combined airtime and handset deals."While most customers receive good value for money, Ofcom is concerned that a significant minority continue to pay the same price after the end of their minimum contract period," Ofcom said."We estimate that 1.5m consumers are in this situation, and are still paying instalments towards a handset that they have already paid off," Ofcom said."We think this is unacceptable. Consumers should be able to clearly identify the goods and services they are paying for, so they can make an informed decision about what to buy - and what to do when the minimum term of their contract ends."One proposal Ofcom put forward was to make providers automatically introduce fairer tariffs at the end of the minimum contract period and be placed on a default airtime-only deal.Research from Citizens Advice revealed an estimated 4m people in the UK had been charged for phones they already own, paying a total of £490m extra on their last contracts.It said three of Britain's biggest mobile phone networks - BT Group's EE, Three and Vodafone - routinely charge customers extra for their handsets after they have been paid off. O2, owned by Spain's Telefonica, does inform customers when they have paid for their phone. "On average customers are overcharged £22 a month, but this could be as high as £38 for high-end phones such as an iPhone 7 or Samsung Galaxy," CA said.