Question to the Department for Science, Innovation & Technology:
To ask the Secretary of State for Science, Innovation and Technology, what assessment she has made of the potential impact of trends in the cost of mobile phone contracts on (a) the affordability of such contracts and (b) connectivity; and if she will make a statement.
Ofcom has a statutory duty to monitor affordability and pricing in the telecoms market. Its most recent Pricing Trends report found that mobile prices have continued to fall. The average monthly cost of a mobile service (excluding handset cost), was 12% lower in real terms compared to 2020, despite an estimated 52% increase in the average consumption of mobile data.
We recognise that this is clearly a difficult time for families up and down the country who are struggling to pay their bills as a result of the global rise in the cost of living. While telecoms represents approximately 4% of a household's budget, Ofcom’s affordability tracker, updated in February, showed that 8% of individuals reported an issue with the cost of their mobile service in the month of January.
In June 2022, DCMS convened a roundtable with leaders of the UK’s major broadband and mobile operators, agreeing a set of industry commitments to support people through the global rise in the cost of living, including more low-cost mobile offers.
On 23 January, the Secretary of State for Digital, Culture, Media and Sport met with Chief Executives from major mobile providers and urged providers to think carefully about the need for these rises and the impact they have on households already struggling with the global rise in the cost of living.