On 26 September 2018, Ofcom launched a Consultation on helping consumers to get better deals on mobile handsets, in which it expressed disappointment that providers have not addressed issues in the market on a quick, voluntary basis without the need for formal consultation and regulation. Depending on the provider, consumers can either receive a mobile handset as part of an airtime contract, or they can have separate contracts for the handset and airtime elements (split contracts). The hardware is as important to the consumer as the service provided through it, so consumers are as interested in finding a way of spreading the cost of the phone as they are in receiving the data and minutes under the subscription services.īundled handset packages offer consumers a way to get a new handset with their service approximately two-thirds of pay-monthly customers are on one of these tariffs, representing more than 20 million customers.
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Unlike routers and set-top boxes, consumers can (and do) buy smartphones as standalone items – the hardware has its own intrinsic value to the consumer (depending on brand, camera quality etc), and that value can be considerable, running into many hundreds of pounds. Nowhere is this more evident than in the smartphone market. Increasingly, the hardware becomes outdated within a comparatively short period of time, so providers and consumers alike want payment packages that offer good value services whilst allowing for upgrades.
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Many are accessed or delivered via some kind of device or hardware whether that is a box, a router, a smart phone or another IoT device.
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There has been considerable growth over the past few years in the number and types of services, considered essential to modern life.