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.

John Barton discusses LG's recent successes - including last week's Mobile News Awards wins - and talks about its current UK activities. Plus, as usual, the team takes a look at the latest activity in the UK mobile phone industry.

This week on The Fonecast there's news about the Apple iPhone 3.0 update and all the other mobile industry headlines from the last seven days. In addition we talk to Chris Caudle from the IMPDA about the ways that high-street dealers are coping with the current economic situation.

The Fonecast takes its regular weekly look at the latest mobile news headlines, including a new technology partnership between Barclaycard and Orange. There's also an introduction to the relatively recent phenomenon of 'App Stores'.

This week's edition of The Fonecast talks about mobile phone recycling with Chris Rogerson from ShP Limited - the company behind Mopay. And, as usual, there's our look at industry headlines from the last seven days.

In The Fonecast this week there's an in-depth look at the new Emporio Armani phone produced by Samsung. We also talk about the latest mobile industry headlines, from Vodafone redundancies to mobile viruses.