just had a text from t-mobile telling me from January 2011 due to VAT increase text messages are going up 1p a text.
so i assume calls will as well will they..??

have other networks done the same??

The text actually tells you that calls and boosters remain the same.
This is for Pay and Go customers, by the way.
As far as I know, T-Mobile are the first to announce how the VAT rise will effect Pay and Go customers.

O2 have been informing customers of the VAT rise as well.

Have they?
They have for contract customers, but I was under the impression T-Mobile were the first for Pay and Go.

This will be a nice earner for the phone companies.

For example, ASDA mobile currently charge 8p per min for calls. After the VAT increase it will rise to 8.17p per min.
So, will they absorb the difference or increase the price to 9p per min?

Hmmm, let me think......

Vodafone have already bumped PAYG voice calls up from 20p to 21p a minute.

However, at the same time they've brought in free texts and data with topups, so they're giving with one hand and taking away with the other.

I think they're hoping not enough people will realise they can opt-in to the free stuff and will continue paying a punitive 10p a text and £1/day for data.

The easiest solution would be to leave everything as it is but only give you £9.79 when you top up £10, (pro-rata for other amounts obviously)
The VAT increase could then be taken into consideration when new tariffs come out, but the old ones could be left in place for now.

Now its December, O2 have released more info for Pay and Go customers. www.o2.co.uk/vat

Basically, a T-Mobile style increase on text messages and the price of some bolt-ons.