Although special deals mean mobile phones are often affordable, the ongoing costs of such a present could be crippling, according to the Ombudsman, John Pinnock.
"When you sign up to a contract for a mobile phone, for example, you become obligated to pay the minimum monthly fee plus any additional call costs for the term of the contract, which can be anywhere from two to three years," said Pinnock. "Unfortunately, your monthly mobile bill will rarely be the same as the minimum fee you signed up for."
Giving a computer can create a similar problem if it gets connected to the Internet, said Pinnock. "A dial-up connection is cheapest but it is slower and unless you get a second phone line, it can prevent use of the home phone."
"On the other hand, with an ADSL or cable connection, although you pay more for the service, you won't pay for phone calls. You will, however, need to pay for excess usage above your plan limit and this can be costly if you don't select the right plan," he said.
Pinnock said it was important for parents to remember that children under 18 years of age cannot enter into mobile phone contracts, and when a parent signs on their behalf they are signing as the principle, and are responsible for all costs incurred.
The Ombudsman has several tips for parents when purchasing mobile phones as gifts. He points to pre-paid phones as a way to limit the number and length of calls made by children, and suggests barring access to premium rate (190x) and international numbers from the mobile. The handset should be protected by a PIN, and if the contract is lengthy insurance for the handset should be considered.
Internet connections should also be barred from dialling premium rate and international numbers, according to Pinnock. This will prevent you becoming a victim of Internet Dumping. He also warns that many broadband plans have a limit on downloads, and once this is exceeded the cost of the service can rise dramatically.
