Why in-contract price hike controls will likely mean the end of UK handset subsidies

Britain’s telecommunications regulator, Ofcom, has told the country’s fixed-line and mobile carriers that they will no longer be allowed to keep customers tied to their monthly contracts if they raise prices before the contract is up. That means any price hike, no matter how small, or even the lowering of a voice or data allowance mid-contract. The move follows a consultation earlier this year and it has massive implications for handset subsidies.