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Vodafone, One 2 One to cut handset subsidies

LONDON-Britain’s mobile carriers are beginning to do away with handset subsidies, with both Vodafone U.K. and One 2 One announcing plans to sharply increase the cost of their cheapest phones.

Both of the carriers’ cheapest prepaid handsets are increasing to about $100 from about $56. Other carriers may be following suit, as the U.K. market becomes saturated and operators are looking to move low-revenue customers to more lucrative contract accounts.

Vodafone is also doing away with its All in One phone package, which includes phone, network connection, one-year line rental and bundled monthly minutes.

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