Hard-up telcos get stingy with mobile give-aways

Save up now for that new iPhone: the era of free or cut-price phones when signing a new mobile phone contract may be soon be over in Europe. Telecom companies, facing a profit squeeze from fierce competition and regulatory pressures, are taking the knife to the generous subsidies that allow new mobile customers to get the latest smartphones on the cheap. Two of Europe's biggest telecom operators, Vodafone and Telefonica, are using Spain as a testing ground for this big change in their business model, while in France a new ultra-low cost mobile player Iliad won clients with a no-subsidy approach. It's a gamble that could boost telcos' bottom lines but could also lose them customers in recession-hit Europe.