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.

We're talking about plenty of new products and services in this week's podcast, including the iPhone 3GS, augmented reality browsers and stealth headsets. Meanwhile, Faisal Sheikh from Fone Doctors tells us that consumers are now looking at operating systems, not brand names, when they choose a new phone.

This week the team takes a look at mobile web browser security... and explains why your bank's recommended browser isn't as safe as you might expect. Plus, as usual, there's an in-depth look at the week's industry headlines.

Iain, Mark and James look at the new iPhone and talk to Ethelbert Williams about the Nokia Point & Find service. Plus there's room for the rest of the week's mobile industry headlines.

In this special extended interview, Suneet Singh Tuli talks to Iain Graham about the PocketSurfer device. They discuss form factors, flat-rate charging for data, roaming charges, convergence, consumer acceptance - and the forthcoming PocketSurfer3.

This week's edition of The Fonecast seems to be disproportionately full of good news... not that we're complaining. There's also an interview with Suneet S Tuli, who's CEO of the company behind the PocketSurfer2 mobile internet device.