Millions of phone users face ‘data rationing and surge pricing’

Millions could face ‘mobile data rationing’ as the US and Israel’s war against Iran continues to cause a global energy crisis.

Telecom giants VodafoneThree, Virgin Media O2 and BT-owned EE are reportedly drawing up emergency plans to cope amid rising fuel costs.

The companies were left out of Chancellor Rachel Reeves’s energy support scheme for struggling businesses.

‘Every phone call costs serious energy’

We’re often told we can save energy by doing our laundry in the early afternoon or turning down our thermostat by a degree or two.

But mobile data doesn’t have an off switch, technology expert Darren Corney tells Metro.

‘Every phone call, WhatsApp message or TikTok video relies on thousands of mobile masts, data centres and cooling systems running 24/7, and all of that costs serious energy,’ the phone expert at Insurance2go says.

‘When demand spikes at peak times, so does the electricity required to keep everything running smoothly.’

So people don’t have to be plunged into a digital dark age, bosses are considering rationing coverage or slowing data speeds, called throttling.

‘Surge pricing’, in which prices rise at times of increased demand, is also being floated to help restrain energy costs, according to The Telegraph.

As are surcharges – think of having to spend more money when using your phone abroad, Corney suggests.

‘For most people, it wouldn’t look like a hard “ration”, but rather a gradual squeeze,’ he adds.

Plans to increase power-hungry 5G – a network that provides faster download speeds – could also reportedly be scaled back.

The network is also essential for commercial applications in industries such as AI, manufacturing, healthcare and transport.

Karen Egan, head of telecoms at the analyst firm Enders, said networks have long been trying to conserve spiralling energy costs, even before the war.

Each 5G mast gobbles about as much power as 73 households, according to experts, with some even calling them ‘energy vampires’.

The entire mobile network consumes 370,000 homes’ worth of power a year, or a little under one terawatt-hour of electricity.

‘Of course they are mindful to ensure that there is no customer disruption from this,’ Egan told Metro. ‘If there are energy shortages, then they could possibly push these capacity-limiting efforts a bit harder, getting closer to the levels where some customer disruption is possible.’

The cost of keeping electrical grids flowing has skyrocketed due to the Iran war, as oil tankers can no longer sail through the Strait of Hormuz.

With the waterway along Iran’s southern coast shut, countries like the UK have less fuel coming in – this scarcity is driving up prices and inflation.

Corney adds: ‘It’s a reminder that mobile data isn’t an invisible, free resource.

‘It’s powered by real infrastructure, and when energy costs soar, something has to give.’

What have mobile companies said?

VodafoneThree has no plans to introduce rationing measures, with a spokesperson telling Metro: ‘We are disappointed that the Government has chosen not to include the telecoms sector in the British Industrial Competitiveness Scheme.

‘At VodafoneThree we are committed to building the UK’s best network, creating jobs and fuelling billions of pounds of value to the UK economy. We urge the Government to consider the impact of rising energy prices on the vital telecoms sector that unlocks growth in all parts of the economy.’

Virgin Media O2 said that the company is not developing any plans to ration data or throttle services.

A spokesperson said: ‘Mobile and broadband networks are critical national infrastructure that almost every consumer and business relies on, yet despite their importance, telecoms companies have been excluded from support offered to other energy-intensive sectors.

‘While we’d urge Government to work with telecoms companies to find an appropriate energy support mechanism that reflects the vital role the sector plays, we have no plans to ration or throttle services, or introduce surge pricing.’

A BT Group spokesperson said the company is working with Mobile UK, which represents network operators, to engage with government officials.

‘However, our focus is on our customers and we have no current plans to ration access to our award-winning EE network, reduce speeds or introduce surge pricing,’ they added.

VodafoneThree has been approached for comment.

Get in touch with our news team by emailing us at webnews@metro.co.uk.

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