UK telecoms regulator Ofcom wants to ban inflation-related rises in phone and broadband contracts. Instead, it says any potential mid-contract price rises should be set out in pounds and pence.

A new forecast from research specialists Canalys shows the smartphone market is set to recover next year. Worldwide shipments declined by 12% last year but that decline is expected to slow to 5% this year.

Vodafone Group plc and CK Hutchison Group Telecom Holdings Limited have agreed to combine their UK telecommunication businesses, respectively Vodafone UK and Three UK. The merger will create a large new network operator to compete with Virgin Media O2 and EE.

UK mobile payment service Paym will close on 7th March 2023. The service, which allowed users to make and receive payments using their mobile phone numbers, was launched in 2014.

Consumer protection organisation Which? has been given permission by the UK's Competition Appeal Tribunal to represent Apple and Samsung smartphone buyers in a legal case against chip manufacturer Qualcomm.

Mark Bridge writes:

Great news for mobile phone users. Ofcom’s new rules preventing unexpected mid-contract price rises came into force last week, which means UK consumers can no longer be surprised by their subscription charge increasing while they’re still locked into a minimum-term deal.

Analyst firm Ovum has published its mobile payment and mobile advertising predictions for this year.

Ovum expects continued technology and service innovation, notably around location-based applications, in the mobile payments space in 2014. However, there will be increasing complexity within the mobile payments ecosystem this year, and on-going challenges around the business model for digital wallet services.

Mark Bridge writes:

HTC experienced a bit of Christmas cheer last week when the threat of a sales injunction against the HTC One mini smartphone and a number of other devices was lifted. Nokia had previously won a patent-related court case against HTC but it seems that a sales ban was deemed too harsh a penalty.

Ashley Gilmour writes:

A quick fact: nearly half of Facebook’s advertising revenue now stems from mobile ads.

That’s right – of the social network’s $1.8 billion (£1.1 billion) generated in the third quarter of 2013, 49% of it was made up of mobile advertising revenue. Last year, the channel represented only 14%.

Mark Bridge writes:

Don't sell the steak – sell the sizzle!  That's the mantra of many salespeople. It's all about emphasising the benefits of a product rather than its features. You don't tell people about the 13 megapixel camera when they ask about the new LG smartphone, you tell them it'll capture the first steps of their precious young nephew in pin-sharp accuracy. Or something like that.

This podcast takes a look at the issue of finance for start-ups - and, in particular, at Accelerators for tech-based companies.

It's a discussion that was recorded at Mobile Monday London earlier this week with a panel including Jon Bradford of Techstars, Simon Devonshire from Telefonica's Wayra, Diane Perlman from Microsoft Ventures and Simon Cook of DFJ Esprit.

We start this week's report with two new smartphones: a flagship Android device from LG and a dual-boot handset from Geeksphone.

We also talk about the health effects of mobile phones, a new mobile loyalty app, wireless charging, machine-to-machine connections, the purchase of Viber and a recent acquisition by Google.

In the past few months, the topics of security and privacy have gripped the mobile industry. The humble SMS text message has been subjected to particular attention, both on its own and in association with smartphone apps.

John Murtagh, CTO at text message specialist Anam Technologies, explains more about the risks involved with SMS, the challenges for mobile network operators and the solutions that can protect consumers.

After catching up with last week's Microsoft announcement about new CEO Satya Nadella, we go on to talk about big changes for Brightstar and Sony as well.

There's also mobile payment news from MasterCard and Weve, some patent agreements, a warning about second-hand smartphone sales, a forecast of mobile data growth and a report about app developers.

The Smart UK project is an annual government-supported competition looking for the UK's Most Innovative Mobile Company.

A few days ago, all 20 companies on the competition shortlist gave a short presentation to the Smart UK panel of judges. Afterwards, Mark Bridge spoke to some of the entrants to discover exactly what they had to offer - and how they planned to disrupt the mobile industry.